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this same process of growth and progress. The
importance of India does not need to be empha-
sized. In area it is the largest Asian nation next
to Conmiunist China. In population its 440 mil-
lion citizens are surpassed in niunber only by the
650 millions of Communist China. It is signifi-
cant that India's importance should most readily
be stated in terms of comparison with Communist
China. Totally aside from the great intrinsic im-
portance of India, the revolution of progress there
has a special importance that transcends even the
destiny of India's millions.

In this struggle India has some great advan-
tages. India has an effective government, based
on solid resources of trained administrators. In-
dia has a substantial measure of literacy and a
backlog of entrepreneurial and technical talent
which, while at present not fully adequate, are
still large in relation to those of many other Asian
lands.

Like the rest of Asia, India is primarily an agri-
cultural country. Almost three-quarters of its
population depends directly on agriculture for
their living. Again like the rest of free Asia,
India's immediate development efforts are de-
signed to build up a momentum of progress to
overcome the ancient scourges of poverty, popula-
tion pressures, disease, and a tragically low stand-
ard of living.

In 1951 the Indian Government launched the
first of a series of 5-year plans designed to mobi-
lize India's resources in the most efficient manner
compatible with India's constitutional injunction
that "justice, social, economic and political, shall
inform all the institutions of the national life."
Now, as 1961 draws to a close, India is in the midst
of its third 5-year plan (1961-65). The prevail-
ing atmosphere in India is one of optimism, confi-
dence, and hope. The basis for this attitude is not



56



to be found in any startling improvement in the
absolute level of development which has been at-
tained but rather lies in the fact that real progress
has begun, the planning has been proved sound,
and confidence has been instilled that domestic
resources and the assistance of friends abroad will
be available to assist in the carrying out of the
third 5-year plan.

In 1951 the per capita annual income in India
was only $50. The scope of the problem facing
India is perhaps best indicated by the modesty
of the goal that the Indians have set for them-
selves — to double this figure within a period of
25 years. To date the achievements of India's
economic and social effort include a 16 percent
increase over 1950-51 in per capita income, a 40
percent increase in gross national income, a 45
percent increase in food grain production, an 85
percent increase in the number of hospital beds.
The progress which has been achieved provides
the basis for real satisfaction. The distance still
to go, however, is a guarantee against smugness.

Tlie principal aims of the third 5-year plan on
which India is now embarked include the securing
of a minimmn of 5 percent annual increase in na-
tional income, the achievement of self-sufficiency
in food grains, the expansion of basic industries,
the utilization to the fullest extent possible of the
manpower resources of the country, and the estab-
lishment of progressively greater equality of op-
portunity and the reduction of disparities in in-
come and wealth. Fulfillment of this plan will,
it is hoped, advance the Indian economy a long
way toward the point of self-sustaining growth.
Once this stage is reached the slow improvement
in standard of living which the average Indian has
enjoyed since 1950 will probably pick up
momentum.

A measure of the significance of India's revo-
lutionaiy struggle is to be found in the response
by the free world to India's needs. In a move
which has no precedent the free international com-
munity has acted to join with India to supple-
ment India's financial resources.

A group centered around the World Bank, in-
cluding representatives from the United States,
Great Britain, Japan, Canada, France, and "West
Germany, with observers from the International
Monetary Fund, Austria, Denmark, Norway, and
Sweden, has moved to consider the amount and
nature of assistance that can be made available to

Deporfmenf of State BuUetin



India. At, (he fourth meeting of this consortium
in the spriu"; of tliis year, financial connnitmonts
of $'2,2'25 million were made to supplement India's
resources for the initial period of the third 5-year
plan. Tliis figure is in addition to an earlier un-
dertaking by the United States to make aA'ailable
$1,300 million worth of surplus food grains.

The concept of a cooperative free-world venture
in assistance to the emerging nations is being more
and more frequently used. The World Bank has
been the focus for a consortium on Pakistan, and
a cooperative approach is being considered for
countries of Latin America. The Colombo Plan
countries, who met recently in Kuala Lumpur,^
have of course been consulting for many years on
economic development problems and prospects.

Communist China

Among the Chinese people we find the same
genius of an ancient culture, the same energies
and intelligence, the same revolutionary s^Dirit,
the same determination for a better life. The dif-
ference between mainland China and tlie rest of
Asia does not lie in the capabilities or the aspira-
tions of the Chinese people. The difference lies
in tlie fact that in free Asia the people and their
leaders are joined in a dedication to the achieve-
ment of the goals of social and political and eco-
nomic freedom and progress. On mainland
China, however, the jieople have been betrayed by
their leaders in their blind enthusiasm for ap-
proaching all problems from the standpoint of
supposed Marxian doctrine, rather than from the
standpoint of human welfare. The energies of
the Chinese people have not been mobilized in
their own welfare but rather in the service of the
state. Freedom, welfare, progress have all been
sacrificed. They have been replaced by one goal
only, that of power — power of the state for its own
uses. The revolution has been betrayed.

Communist China is a closed society. As a re-
sult, obtaining an accurate picture of the economic
situation today m Communist China is fraught
with uncertainty and imknown quantities. How-
ever, the full dimensions of the Communist fail-
ures in China are beginning to emerge, and the
repercussions may be vei-y deep indeed. In 1958
a "great leap forward" was decreed — productivity
was to know no limits. Production statistics



' Ibid., Dec. 11, 1961, p. 988.
Januory 8, 1962

623332—62 3



were produced to justify the new program, and
according to these statistics productivity indeed
knew no limits. According to Chinese Commu-
nist official figures of the time, the grain harvest
for 1958 was 375 million tons, over 100 percent
more than that of 1957. On the basis of these
figures the target for 1959 was set at 525 million
tons. Then some sti-ange events began to occur.
The harvest figures for 1958 were revised down-
ward. The 1958 grain harvest, it was announced,
was not 375 million but rather 250 million tons.
(Actual jiroduction was probably al)out 210 mil-
lion tons.) Despite this discrepancy, however,
politics remained in command and the "great leap
forward" continued. The 1959 harvest was re-
ported to be 270 million tons, that is, 20 million
tons more than the revised 1958 figures. I cannot
bring these figures up to date. A statistical
blackout has been imposed on agricultural and
industrial production statistics for 1960 and 1961.
However, other information indicates per capita
food output is below even the level of 1950, when
the country was just emerging from the ravages
of the civil war.

It is obvious that the glowing agricultural re-
ports, and similar "leaps forward" in industrial
production statistics, have rapidly disintegi-ated
in the face of the growing food and other short-
ages that have gripped the nation. This is an
unpleasant but very real fact that is becoming
increasingly difficult to conceal.

Thus, despite the difficulties of obtaining statis-
tical information, the general outline of develop-
ment in Communist China is clear. For 11 years
total power has been in the hands of a regime
dedicated to the forced-draft creation of state
power. Political considerations, that is, the re-
gime's expansionist ambitions and search for the
symbols and power of great-nation status, have
been in command. The agricultural sector of the
economy, that is, 80 percent of China's popula-
tion, has been heavily exploited to finance the mil-
itary and heavy-industry expansion, although
prudence would have dictated investment in agri-
culture to bring it to the point where it could
support the burden of industrial development. As
I have pointed out, the disastrous consequences of
this policy are becoming clear. The United Na-
tions Food and Agriculture Organization, in its
1961 amiual report, offers a revealing contrast
between the encouraging improvement in agricul-



57



tural production of the free countries of Asia
compared with the agricultural failures and food
shortages of the Chinese mainland. Communist
China's economic development, offered with much
fanfare as the model for an Asian underdeveloped
nation, has collapsed in a monumental example of
centralized mismanagement.

Tlie execution of Communist China's grandiose
economic plans has ground to a halt. It is not
clear what will emerge. However, the regime's
control is based on military power and not on
popular support, and its hold over the 650 million
Chinese does not seem to have been seriously
threatened by the fantastically costly errors of its
leadership. This continued command of the re-
sources and people of Communist China remains
wedded to single-minded dedication to the crea-
tion and external application of state power. It
would thus be imprudent for us to base our cal-
culations on any presumption other than a future
in which the Red Chinese regime continues to
control the heartland of the Far East and con-
tinues to build up the power of the regime — a
power which will be used in an effort to expand its
influence over surrounding territories and to expel
the American presence from Asia and the west-
ern Pacific. Nor would it be prvident to believe
that this power may not be subject to sudden in-
creases — perhaps the development of nuclear
weapons — as well as to dramatic setback such as
that caused by gross economic mismanagement.

The principal lesson which Communist China
teaches is the enormity of the cost when a popular
revolution is betrayed. The cost, of course, is
bome primarily by the immediate victims, the
people of the country whose hopes have been
dashed and who have had the fulfillment of their
aspirations postponed and who find that tlioir
labors are used to strengthen their bonds, not to
free them. The next most affected are the people
of neighboring areas, who find, instead of the i-e-
gional strength and cooperation which they need,
that their neighbor has designs against them and
actively combats every painful step forward that
they attempt. But the cost also weighs heavily
on all those who have a stake in a world of order
and peace, a world in which the welfare of the
individual is judged more important than the
trappings of state power or the chauvinism of
totalitarian rule. With the lesson of the heavy



58



cost of failure in mind, let us turn to the role of
the United States in the revolution of the emerging
states.

U.S. Role in Revolution of Emerging States

The history of the United States and the tradi-
tions and ideology of this country have already
shaped this role. America's deep dedication to
social justice, to the dignity of the individual, and
to human progress requires us to give our sympa-
thetic support and assistance to new nations im-
bued with the same ideals and struggling along the
same path that we ourselves have traveled. But
in the face of the Communist determination to ex-
tend its sway throughout the world, it is clearly in
our self-interest to extend our encouragement and
help to the emerging nations. In terms of our na-
tional security interests, each one of these strug-
gles for progress is a battle in the campaign for
freedom in which we are all engaged. In the
words of Secretary of State Rusk : *

Whenever an underdeveloped country makes economic,
social, and political progress it expands the frontier of
freedom. Wherever we cooperate in breaking down the
barriers of ignorance, poverty, disease, and despair, we
farther not only the well-being of mankind but our own
security.

Our actions are founded on the belief that the
revolution of the emerging nations — the transition
to modem social concepts of human freedom and
to the technological base which can support the
practice of these concepts — must be permitted to
unfold. This revolution can only be carried out
by the people of these nations themselves. No one
else can do it for them. But we do have two major
roles to play. The first of these is to assure the
freedom of the revolution. We must prevent ex-
ternal interference, subversion, and aggression
from stifling the revolutionary process. The sec-
ond is to give such cooperation and support as we
can to the orderly social, economic, and political
development of the emerging nations.

Political Support for Termination of Colonialism

The discharge of our first responsibility has
been the history of our political and defen.se efforts
in Asia since the closing days of the Second World
War. We furnished strong political support for
the termination of colonialism in Asia and the



* Ibid., Oct. 30, 1961, p. 702.

Department of State Bulletin



establishment of these new countries as independ-
ent nations. We are proud of the example we our-
selves set in our role in the establishment of the
Republic of the Philippines and in sharing with
the people of the Philippines our own dedication
to democratic ideals. The recent elections in the
Philippines furnish renewed evidence of the
strength and vitality of the democratic institu-
tions established there. Our occupation of Japan
and peace treaty with that country was a notable
example of a helping hand proffered to a foi'mer
enemy. Our participation in the United Xations
action to repel Communist aggression in Korea
was a signal of our awareness of the threat of
communism to the nations of Asia and our deter-
mination to assist in meeting this threat. The
establislmient of the Southeast Asia Treaty Or-
ganization and our bilateral defense treaties with
Japan, the Republic of Korea, the Republic of
China, and the Philippines, and our mutual de-
fense assistance programs with numerous coun-
tries in the area are all further landmarks in this
continuing effort to join with the emerging nations
in their responsibility for maintaining the integ-
rity of their countries. The most recent chapter
in this history is our current heightened concern
with assistance to the Republic of Viet-Nam in its
struggle for survival against North Yiet-Nam's
efforts at conquest.

Long-Range Economic and Social Development

The discharge of our second responsibility en-
compasses almost every phase, aside from the
strictly military, of our relationships with the
emerging nations. Our objective is purely that
of helping to foster the long-range economic and
social development of these countries in accord-
ance with their own plans and aspirations.

Our cooi^eration with the emerging nations
ranges from the Fulbright program to Food for
Peace, from long-term developmental loans to the
Peace Corps, from technical assistance programs
to private investment, from outright grant aid to
enlightened trade policies which will permit the
emerging nations to find a market for the prod-
ucts of their industries and to become a market
for our own. I will not seek to catalog the pro-
grams on which we are engaged but will only
mention some of the chief premises on which these
programs are based.



The major premise for these programs is of
course to be found in our own dedication to free-
dom and progi-ess. This dedication is a major
component of our national purpose and our na-
tional strength. The confidence which others re-
pose in the United States and tlieir willingness
to look to the United States for leadership stem
directly from our demonstration, at home and
abroad, of our support for these ideals.

Secondly, progress can only be assured when a
country fulfills its own responsibilities to help it-
self. We cannot carry out their revolution for
others. And we cannot dissipate our resources in
seeking to help a nation whose leaders are miwill-
ing to match economic growth with increasmg
measures of social justice, of education, of im-
provement in the lot of the people.

An important point which lies at the core of our
programs is that we do not seek to have other na-
tions mold their image in that of the United
States. Indeed, this would be the antithesis of
our purpose. Our purpose is to assist each nation
to produce, out of its own culture and heritage,
out of its own resources and aspirations, the kind
of modern society it wants for itself. We are con-
fident that, if permitted to do so, each nation will
fashion in its own way and at its own pace a so-
ciety where human freedom and the dignity of
the individual are valued. In this way our own
open society will find an increasingly compatible
environment.

Each benchmark of progress that is achieved
increases the contribution which the diversity and
richness of the Pacific area will make to our world,
increases the power and importance of the area.
This great potential, and the importance of our
own contribution to its realization, are at the base
of my conviction that a significant shift in the bal-
ance of our mterests and of our attention toward
the Pacific community of nations is in the making.
Indeed, the Pacific community may well be the
most significant theater of decision in the revolu-
tion I have discussed this evening. I am confi-
dent that we on this side of the Pacific shall not
be found wanting in extending the fi'iendship,
support, and enlightened cooperation which the
emerging countries will need in the years ahead.
In so doing we shall, as Americans, be accepting
the responsibilities inherent in our traditions and
beliefs and best contributing to the attainment of
our own national ideals.



January 8, 1962



59



Africa's Challenge to American Enterprise

hy G. Mennen Williams

Assistant Secretary for African Affairs ^



To share this luncheon meeting with such a dis-
tinguished group of fellow Americans is a reassur-
mg pleasure. I am happy to join you this after-
noon in these important discussions which seek the
most effective means of enlarging the participation
of Negro Americans, a vital element of our popu-
lation, in the business life of our nation. This is
a timely endeavor. Its success can contribute sub-
stantially to our total welfare and to the fi-eedom
we are pledged to defend and to extend at home
and abroad.

We are citizens of a responsible government,
and we live in a world which becomes day by day
a more closely knit community. With friends and
allies, we are engaged in an historic struggle, a
struggle, as President Kennedy has described it,
"against the common enemies of man: tyranny,
poverty, disease, and war itself." ^ This is our
heritage and our historic opportunity.

I am also pleased to be with you today because
I believe you can enhance America's contribution
to international development. Your efforts might
well be directed toward nations of Asia, Latin
America, or parts of Europe — and I think you
should examine the possibilities offered by those
areas; however, my own parochial interests urge
me to suggest that you consider the challenge of
Africa. I believe you can make a significant con-
tribution to our mutual assistance efforts on that
continent as you enlarge your participation in our
own national economy, strengthening it, and as
you become increasingly involved in international
economic affairs.

One of the great challenges of Africa is the
challenge of economic development. Only t Inough



' Aildress made hcfoio the National Conference on Suiiill
Business al Washiii;;t(in, T).C, on Poe. 1 (press release
828).

' Bulletin of Feb. G. l!)('.l. p. 175.



increased productive power and improved eco-
nomic well-being can the nations of Africa meet
the ever-rising expectations of their citizens for a
better life.

In examining this challenge let us not under-
estimate the size of the task. Consider the fact
tliat Africa is a great landmass more than three
times the size of the United States. I wish all of
you could see for yourselves, as I have seen, the
extraordinary diversity of its geophysical, cli-
matic, etlmic, and cultural aspects. Africa is the
home of some 230 million people. Some of them
participate in a surprisingly advanced economy,
but most of them are only beginning to enter a
modern economy and are only beginning to carry
their share of the continent's productive burdens.

You know already of Africa's economic poten-
tial. Producer of most of the M'orld's diamonds,
gold, and cobalt, it is the source of very large sup-
plies of uranium, manganese, copper, and iron.
Rubber, palm oil, cocoa, coffee, and vanilla are
among Africa's principal resources, and the con-
tinent is coming into its own as a major oil pro-
ducer. This great economic potential, African
leaders realize, is yet only partially tapped. Plow-
ever, an equally important consideration is that in
most of Africa the tasks of meeting the basic needs
of most of the people have just begun. Among
the problems still to be resolved are these: Health
conditions must be drastically improved. To meet
manpower needs, education, botli liberal and tech-
nical, must be improved, adapted to the African
scene, and extended to lai'ger segments of the pop-
ulation. If well planned and executed, there can
be no more rewarding investment than in human
beings. Tlie development of networks of trans-
portation and communications also deserves high
priority. And of course the vital role of water
and liydroelectric power can be seen in the impor-



60



Department of Stale Bulletin



lance more and more African leaders attach to
projects for constructing dams.

Irrespective of the political forms they have
adopted, developing African countries must ac-
cumulate capital in order to meet these basic needs.
Two courses are open to them. They can reduce
tlieir present rate of consumption; or they can
achieve a more rapid rate of economic growth,
tJiereby generating a larger supply of savings. In
a continent wliere the average per capita income
is $i;>2 — and only $89 in tropical Africa — de-
ci'eased consumption is not a wise goal. Rapid
economic growth is a much more judicious and
humane means of capital accumulation. It im-
plies, however, availability of capital — capital in
the largest sense of the word. In Africa, as else-
where in the world, capital must either be gen-
erated internally through domestic savings out of
income, or it must come from external sources.
These external sources include private investment
as well as various kinds of foreign government as-
sistance.

The United States is clearly committed to for-
eign aid. Our own nation owes a gi'eat deal to
the assistance European countries and European
private business gave us during our formative
years.

The United States has been involved in foreign
aid of various kinds for some time. Our overrid-
ing philosophy has been that set forth by Presi-
dent Truman in his point 4 address : ^

Only by helping the least fortunate of its members to
help themselves can the human family achieve the decent,
satisfying life that is the right of all people.

Now we are engaged in a new program of inter-
national development aimed at helping these less
fortunate nations to increase their productivity
and improve their standard of living. Our Gov-
ernment assists these nations through various
means : scholarships and other forms of educa-
tional assistance, through the Peace Corps and
other human-resource and human-commitment
activity, through the Food-for-Peace Program,
through long-term loans, tlirough supporting as-
sistance, through development grants, and by
drawing on the financial and management assets of
private enterprise.



Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 46, Jan- Mar 1962) → online text (page 18 of 101)