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and it is increasingly clear why that identification
is right and natural at this point in history. The
tasks of defense and of economic development are
related means to a larger end — an end which
transcends the CENTO region. The nations of
Asia, the Middle East, Africa, and Latin America
are in the midst of the process of modernizing
their societies. Some are well along that road;
others are just beginning. What we sometimes
call underdeveloped nations represent a very wide
spectrum, with different problems marking each
stage along the road to self-sustained growth.
And, in the end, each nation, like each individual,
is in an important sense unique. What is common
throughout these regions is that men and women
are determined to bring to bear what modem
science and technology can afford in order to ele-
vate the standards of life of their peoples and to
provide a firm basis for positions of national dig-
nity and independence on the world scene.

The United States is firmly committed as a
nation to support this effort. We look forward
to the emergence of strong, assertive nations
which, out of their own traditions and aspirations,
create their own forms of modern society. We
take it as our duty to help maintain the integrity
and the independence of the modernization proc-
ess going forward in many parts of the world,
insofar as our resources and our ability to influ-
ence the course of events permit.

That possibility is challenged by Communist
objectives and Communist policy. The Commu-
nists also perceive that the process of moderniza-
tion involves fundamental social, political, and
economic change. These are boimd to be turbulent
times; and it is the Communist intent to exploit
the turbulence of this transitional process in order
to seize power and to mold the emerging world
in their image and link it tightly to the Commu-
nist empire.



522



Deparfmenf of Sfafe Bi///ef/n



It is often said that what we can observe in the
contemporary world is a struggle between two
blocs. This is not the case. What is at stake is
whether a new world order shall be created by
the voluntary association and cooperation of inde-
pendent nations, each having fashioned its own
modem personality, or a world order, dominated
from a single center, of nations forced into a single
mold.

We in the United States can live comfortably
in a pluralistic world because our life at home is
based on the principle of cooperation among dig-
nified equals; but the Communists are driven, by
their methods for organizing power, to violate
equally the integrity of individuals and of na-
tions. Thus, when seeking power, they aim to
associate themselves with all manner of forward-
looking human and national aspirations. Once
in power, they drag from the shelves their dreary,
archaic handbooks and impose a pattern of organ-
ization which runs against the grain of human
and national character and personality. In the
end that is why the Communist offensive will fail.

We have not forgotten the lesson of Korea. We
cannot assume the Commvmists will not again
overtly cross frontiers with military force, and
our dispositions with respect to the CENTO area
and elsewhere take that possibility into accoimt;
but it is also clear that for some years they have
been relying heavily on the possibility of exploit-
ing the internal turbulence which inevitably comes
with the drive toward modernization, to seize
power from within.

In defense of the independence of nations and
the national integrity of the modernization proc-
ess, we are, therefore, equally concerned with
problems of defense and with the constructive
tasks of development.

If I may add a personal word : I have for many
years been professionally interested in the prob-
lems of economic development, and there are those
who may fiiid it odd for an economist to be also
concerned, as I have been, with the problems of
countering Commimist methods of guerrilla war-
fare and subversion.^ But it is, in fact, quite
natural for a student of modernization to interest
himself in the economic, social, and political de-
velopment of Viet-Nam and also in its protection
against indirect invasion from the north, with the



* For an address by Mr. Rostow on guerrilla warfare in
the underdeveloped areas, see ibid., Aug. 7, 1961, p. 233.



Alliance for Progress and also the defense of Latin
America from the infection which the Communists
are seeking to impose upon it, and with all the
related military and constructive activities of
CENTO. For communism is not the wave of the
future; it is a disease of the transitional process
which well-trained, well-organized professional
cadres seek to impose on societies at the early
stages of modernization.

Postwar Experience in Economic Development

In any case the policy of my Government is to
do what it can both to assist those who would
modernize their societies and to help them defend
their national independence as modernization
goes forward. We must build together, and we
must protect what we are building.

As we move into the 1960's all of us in the free
world are trying to consolidate and to build on
the lessons we have learned about economic
development since the end of the Second World
War.

The first lesson is that aid from outside a
country can only be helpful to its development to
the extent that the government and people of a
nation organize their own resources. Economic
growth is primarily a national enterprise. As you
have demonstrated by some of the CENTO
regional projects, development cannot and should
not be wholly viewed in national terms; and cer-
tainly external assistance is important, but the
heart of economic development consists of national
measures of self-help.

Second, national planning of the development
process is required as a basis both for the domestic
mobilization of resources and effective foreign aid.
National plans are needed because — as Adam
Smith noted long ago, when prescribing for under-
developed Britain of the 18th century— govern-
ments must create the framework within which a
modem economy can develop. It is the govern-
ment which must organize and finance the educa-
tional system and shape it to the nation's needs.
It is the government which must lay out and, in
most cases, finance the fundamental social over-
head projects — in transport, electric power, and
other sectors — on which development depends. It
is the government which must solve problems of
land tenure and create the framework within which
agricultural productivity can be improved by the
individual peasant. It is the government which



March 26, 7962



523



must assure that the savings of the coinmunity
are effectively mobilized by equitable taxation, so
that investment projects can be financed without
inflation and on terms the people will regard as
fair. It is the government which must devise
policies which insure that the foreign accounts
are kept in balance and that the development ef-
fort is not frustrated by a foreign exchange crisis.

These minimal fimctions were performed by
governments even in nations most deeply com-
mitted to private enterprise, blessed with ample
land and an old tradition of private entrepreneur-
ship — like Canada and the United States. In our
own time, and where these initial circumstances
do not exist, governments may have to go further
and help set the national targets for the private-
enterprise sector or even, for a time, manage a
portion of the industrial system.

It may seem strange that we in the United
States, who are so deeply attached to the virtues
of private enterprise, should be the advocates of
national planning in the underdeveloped areas.
There is, in fact, no incompatibility between a be-
lief that national planning is essential in the early
stages of development and a belief in the wisdom
of leaving to private enterprise a wide and ex-
panding range of economic activities. How wide
that range is each coimtry will, of course, decide
for itself in tlie light of its own problems and pos-
sibilities. But the framework within which a
modern private-enterprise system can develop
must, in large part, be created initially by the
effort and initiative of governments. It is this
perception which has drained away much of the
fervor from the argument about government
versus private enterprise in the development
process — an argiunent which, even a few years
ago, seemed to be central to the whole business.
As nations have acquired practical experience in
economic development, it is becoming increasingly
clear that each of the two sectors has a job to do
and that their jobs are supplementary and
mutually reinforcing.

When self-sustained and regular growth has
been attained the natural course of events is for
the private sector to expand rapidly, for efficiency
in producing many diverse manufactured prod-
ucts is hard for a government to attain. The les-
son of history is that the interests of an advancing
society are best served when the bulk of industry
and agriculture are managed by individuals or
firms forced by competition to keep their costs



low, their methods modem, and their output re-
sponsive to the changing tastes of the people. But
even then the government does not lose all its
functions in the economy — as the state of things in
the United States and Western Europe suggests.

Although national planning is crucial to the
development process — notably when nations are
approacliing the stage of takeoff into self-sus-
tained growth — we have also come to understand
what is involved in making a plan effective. Good
paper plans are not enough. With all due respect
to my profession, economists cannot build roads,
or administer powerplants, or go out to the vil-
lages to teach more efficient ways of growing food.

An effective plan must be backed by the whole
administrative apparatus of the state, not merely
its planning organization. It must be capable
of generating feasibility studies and blueprints
for individual projects. It must provide not only
goals but the means to achieve those goals step by
step, day by day. And in the end the plan must
engage the minds and hearts of the people — from
the cabinet to the villages.

Importance of Long-Term Planning

A third lesson of our postwar experience is that
foreign aid is likely to be most effective if it is
geared into national development programs on a
long-term basis. In committing themselves and
their peoples to ambitious development goals —
and demanding the sacrifices and efforts which are
necessary for their fulfillment — it is natural that
governments should wish to know in advance how
much foreign aid they can count on over any
planning period.

American foreign aid legislation has now taken
this factor into account, and we ha^e been joined
by our partners in Western Europe, Canada, and
Japan. We are rapidly learning to weave to-
gether the national and international contribu-
tions to development in a systematic way, and we
look forward to extending this method as new
national development programs come forward.
We would expect the OECD [Organization for
Economic Cooperation and Development] and its
Development Assistance Committee to become an
increasingly important instrument for this col-
laborative pui'pose as time goes on.

A fourth lesson is this: Altliough we are still
learning this job together — and have much to
leani — we are confident that the methods of free



524



Department of State Bulletin



men will prove more effective than the apparently
more efficient techniques of totalitarian i-egimes.
Quite aside from the inhumanity of Communist
methods, it appears to be a technical fact that the
most powerful system of control is an inadequate
substitute for the incentives and commitment of
the individual citizen, once he can be engaged.
Development is a process which requii-es that mil-
lions of human beings and many organized groups
assume responsibility for mo%ang things forward
on their narrow part of the front. There are
simply not enough Communist cadres or secret
policemen available to substitute for the energy
and commitment of men and women who under-
stand what needs to be done and why it is their
interest to do it. This weakness of communism is
most apparent in the field of agriculture. Com-
munist methods have managed to shift one Com-
munist countrj' after another from food-surplus
to food-deficit status; and in the Soviet Union
itself they must maintain perhaps twice the work-
ing force in agriculture they would need if they
were not committed to the method of control they
feel necessary for the political safety of the regime.
This is no trivial matter, for an increase in agri-
cultural productivity is required not merely to
feed the people and the expanding cities; it is
essential for the development of industry and
industrial markets and for the maintenance of a
healthy balance-of-payments situation. The vast
general economic crisis in Communist China
should be studied as a lesson in the crucial im-
portance of agricultural productivity to the devel-
opment process as a whole.

The difference between Communist planning
and planning in the free world comes to this:
Communist planning is a device for maximum
political control over the individual, and it
thereby burdens the state with functions it can-
not efficiently carry and destroys individual in-
centives needed for a vital economy; planning for
underdeveloped countries in the free world is a
device for assuring balance in the growth process
and for creating a framework within which in-
dividual incentives and individual initiative can
l)e effective.

In short, the lesson of our experience thus far
is that we should be confident that, in going for-
ward with economic development by the methods
of pragmatic planning and individual consent
which are natural to us, we are on the right track
technically as well as morally.



We have drawn, then, from the first phase of
postwar experience with development an aware-
ness that foreign aid can only be helpful in pro-
portion to the efforts of self-help within a
country; an imderstanding of the crucial role of
national development plans in creating the
framework for the whole development process;
an understanding of the need to make available
foreign aid on a long-term basis in relation to
national development plans; and an inner confi-
dence that while the tasks ahead are enormous,
there is no reason to believe that communism rep-
resents a technique of organizing for development
which cannot be outmatched by the methods of
more open societies if we put our minds fully to
the task.

I am aware that each of the nations from the
CENTO region is now committed to the method
of national planning for development. I believe
that all three of the nations concerned with the
development process represented here can move
forward in confidence that their national pro-
grams, either now in effect or to be placed into
effect, will find steady assistance not merely from
the United States but from other industrialized
nations of the free world. The truth of the matter
is that the real shortage at the moment in the field
of development is not money but carefully de-
signed national programs and well-staffed proj-
ects. There is great creative ferment throughout
Asia, the Middle East, Africa, and Latin America ;
and although plans and projects cannot be turned
out overnight, I am confident that we shall see
in the next few years a sharp increase in the num-
ber of development plans which deserve support
and which will get support on a long-term inter-
national basis — not merely from the United States
but from Western Europe, Canada, and Japan.

In greeting you I have tried to make clear why
we would now place great emphasis on the gen-
eration of national development plans, notably for
nations as far along in the growth process as those
present here. But such plans are, of course, means
to a larger end, not an objective in themselves.
Tliey are not merely a device for mobilizing a na-
tion's resources but a way of focusing a nation's
talent and energy in a common enterprise — a way
of enhancing a sense of common national objec-
tives and of common nationhood. More than that,
international cooperation, as we all envisage it,
must be rooted in strong national states which
laiow where they are going and can relate what



March 26, 1962



525



they wish to do with others with what they wish
to do at home. Tlie strength of CENTO depends
on the strength of each of us. Our ability to col-
laborate with each other here — and to play our
part in wider enterprises of the free world — de-
pends on the soundness of our domestic arrange-
ments. Regional cooperation, rooted in this
principle, can strengthen, both economically and
politically, countries which work together. Much
progress has been made through CENTO in this
direction, and more is possible.

May I say again how glad I am for having had
the opportunity to meet with you. I wish you a
fruitful session.



FINAL COMMUNIQUE

Washington, Fetruary 28, 1962

The Economic Committee of the Central Treaty Organ-
ization (CENTO) has concluded three days of close ex-
amination of the Organization's technical assistance and
capital investment programs in Iran, Paliistan and Turkey
with particular attention to the aid being provided by the
United States and the United Kingdom.

Under the Chairmanship of the Honorable "William M.
Rountree, Leader of the United States Delegation, the
delegates from the five participating countries approved
a Report and a series of recommendations relating to the
welfare and future development of the region for the
consideration of the CENTO Council of Ministers which
will meet in London on April 30, 1962. Considerable at-
tention was given to regional aspects of the economic de-
velopment of Iran, Pakistan and Turkey, the importance
of economic justifications and priorities for CENTO
projects and the policies which the United States and the
United Kingdom have established for the efiicient and ef-
fective provision of financial and other assistance to sup-
plement the substantial domestic investments made by
Iran, Pakistan and Turkey.

The representatives of the United States announced new
aid criteria, based on the conviction that total resources
available to a country, domestic and foreign, can be most
effective If utilized in accordance with a national develop-
ment plan. In this way foreign assistance can support
projects and programs to which the countries are intend-
ing to apply their domestic resources.

The Committee also reviewed the technical assistance
activities of the Organization which are directly promot-
ing the welfare of the peoples of the region in a wide and
varied field, notably in the provision of experts, fellow-
ships and other training and educational facilities, and
the supply of technical equipment. The Committee noted
that these technical assistance activities are in the main
financed from U.K. and U.S. funds but that mutual assist-
ance between the countries of the region is playing an in-
creasingly significant part in their execution.

At the conclusion of the final meeting of the Tenth
Session of the Economic Committee, the Chairman sum-



marized the views of the five delegations by stating that,
while coming to grips with a great number of complex
technical and economic policy problems, the Tenth Session
of the CENTO Economic Committee introduced a new
clarity for the achievement of cooperative objectives and,
as a consequence, generated a more practical program for
accelerated economic development for the CENTO region.
He felt that the tangible benefits to the nations concerned
should become more evident with the passage of time.



Current U.N. Documents:
A Selected Bibliography

Mimeographed or processed documents {such as those
listed helow) may be consulted at depositary libraries
in the United States. U.N. printed publications may be
purchased from the Sales Section of the United Nations,
United Nations Plaza, N.Y.



General Assembly

Additional statements of qualifications of candidates for
election as members of the International Law Commis-
sion. A/4780/ Add. 4. November 17, 1961. 8 pp.

Letter dated November 20 from the Minister for Foreign
Affairs of Italy to the Acting Secretary-General con-
cerning the massacre of Italian airmen in the Congo.
A/4976. November 21, 1961. 2 pp.

Addendum to the 19th progress report of the U.N. Con-
ciliation Commission for Palestine. A/4921/Add. 1.
November 22, 1961. 24 pp.

Agreement between the U.N. and the Congo (L4opold-
ville) relating to the legal status, facilities, privileges
and immunities of the United Nations Organization in
the Congo. A/49S6. November 27, 1961. 14 pp.

Report of the Secretary-General on a United Nations in-
ternational school. A/4991. November 28, 1961. 16

pp.
Provision of food surpluses to food-deficient i»eoples
through the U.N. system. A/4907/ Add. 1 and Corr. 1,
November 29, 1961, 12 pp. ; Add. 2, December 6, 1961,

3 pp.

Report of the U.N. Commission for Ruanda-Urundi.
A/4994 and Coit. 1 and 2, November 30, 1961, 143 pp. ;
Add. 1, November 30, 1961, 138 pp.

Report of Sir Leslie Muuro, U.N. Special Representative
on the Question of Hungary, and letter dated Decem-
ber 12 from the chairman of the Hungarian delegation
addressed to the Acting Secretary-General. A/4996,
December 1, 1961, 9 pp.; A/u028, December 12, 1961,

4 pp.

Letters from the Soviet permanent representative concern-
ing discontinuance of nuclear weapons tests. A/4990,
November 27, 1961, 8 pp.; A/5009, December 5, 1961,
3 pp. ; A/5034, December 14, 1961, 4 pp.

Letters concerning the situation with regard to the imple-
mentation of the declaration on the granting of Indfv
pendence to colonial countries and peoples. A/49So,
November 25, 1961, 12 pp. ; A/49S9, November 27, 1961,
2 pp. ; A/5077, December 20, 1961, 6 pp.



Economic and Social Council

Administrative budgets of the specialized agencies for
19G2. A/5007. December 4, 1961. .53 pp.

Review of the activities and organization of the Secre-
tariat. A/.500G. December 5. 1961. 7 pp.

Supplementary report of the U.N. Commission for the Uni-
fication and Rehabilitation of Korea. A/4900/Add. 1.
December 6, 1961. 8 pp.



526



Department of Stale Bulletin



March 26, 1962



Index



Vol. XLVI, No. 1187



Africa. The Realitiea of Foreign Policy (Rusk). . 487

American Republics. The Realities of For-
eign Policy (Rusk) 487

Asia. Regional Operations Conference Meets at
Baguio 511

Atomic Energy

U.S.S.R. Agrees To Begin Disarmament Talks at

Foreign-Minister Level (Kennedy, Khrushchev) . 494
U.S. Plan To Resume Nuclear Testing Explained

to Japanese Prime Minister (Ikeda, Kennedy) . 497

Burma. United States Recognizes New Govern-
ment of Burma 499

Cameroon. Letters of Credence (Moukouri) . . 499

Communism. Theories, Dogmas, and Semantics

of Communism (Mann) 500

Congress, The

Congressional Documents Relating to Foreign

Policy 519

Department Supports Approval of 1960 Safety of
Life at Sea Convention (Trezise) 520

President Recommends Expansion of Peace Corps . 521

Speech Review Procedures of the Department of

State (Ball, Tubby) 513

Department and Foreign Service

The Realities of Foreign Policy (Rusk) .... 487
Regional Operations Conference Meets at Baguio . 511

Disarmament. U.S.S.R. Agrees To Begin Disarma-
ment Talks at Foreign-Minister Level (Kennedy,
Khrushchev) 494

Economic Affairs

Department Supports Approval of 1960 Safety of

Life at Sea Convention (Trezise) 520

Progress in National Development Through CENTO

(Rostow, text of communique) 522

Foreign Aid. President Recommends Expansion of
Peace Corps 521

International Information. Secretary Greets Voice

of America on 20th Anniversary (Rusk) . . . 510

International Organizations and Conferences

Progress in National Development Through CENTO

(Rostow, text of communique) 522

U.S.S.R. Agrees To Begin Disarmament Talks at

Foreign-Minister Level (Kennedy, Klirushchev) . 494

Japan. U.S. Plan To Resume Nuclear Testing
Explained to Japanese Prime Minister (Ikeda,
Kennedy) 497

Middle East. Progress in National Develop-
ment Through CENTO (Rostow, text of com-
munique) 522

Morocco. Letters of Credence (BengeUoun) . . 499

Presidential Documents

President Recommends Expansion of Peace Corps . 521
U.S.S.R. Agrees To Begin Disarmament Talks at



Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 46, Jan- Mar 1962) → online text (page 100 of 101)