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ularly when their impact is concentrated on one
industrial sector or a few communities, appear to
be an unfair and unreasonable intrusion. Nobody
can blame a worker for being aggrieved if he feels
that he has been displaced from his job by a prod-
uct from abroad. Nor can we fail to sympathize
with a businessman who finds his sales and profits
slipping away in the face of import competition.
As a community we can at least provide in com-
mon for assistance where workers, firms, or in-
dustries which have enjoyed protection from
imports have been injured after that protection
has been reduced.

This is what the President is proposing in the

February 19, 1962


adjustment assistance provisions of the new trade
legislation that is being sent forward to the Con-
gress.^ For the first time in the history of our
tarift' legislation the executive branch is proposing
that we try to deal with the local impact of imports
on the basis that the conununity as a whole has
an obligation to assist those who may have been
affected by actions taken on behalf of the whole
community. We are overdue for such a reform.
Apart from this item of elementary justice that
is included in the bill, the new trade legislation
promises to focus the country's attention on our
import and export business as never before. We

can hope that the great debate now shaping up
will bring forth a trade policy law suited to the
times. Let us also hope that the debate will en-
lighten and educate us about our interests in trade
with other nations. As we come to understand the
issues better, most of our unfounded feai-s, I tliink,
will fall away. The idea will gain more accept-
ance that in buying — as well as selling — abroad
we enrich rather than harm ourselves. Nothing,
I think, could do more to smooth over the diffi-
culties and frictions in our trade with Japan than
a wider public understanding of this not very
revolutionary proposition.

Is Foreign Aid Really Necessary?

hy Roger W. Tubby

Assistant Secretary for Public Affairs '

In the spring of 1961 Adlai Stevenson took a
trip to South America.^ At a dinner just before
he was leaving. Bob Hope introduced him by say-
ing: "Adlai 's going to South America to visit
the friends of the United States — and he will be
back the same day." Things weren't quite that
bad then, and in any event they have improved
considerably since.

It is safe to say that we can count among our
friends all of the free-world nations and a clear
majority of the non-Communist nations. This is
not because we inspire love, or because of our
many military alliances, or because of our foreign
aid program. It is largely because they share
with us a desire that there be a peaceful world
of free and independent states.

Your Department of Commerce and Industry
in a recent booklet said tliis :

New frontiers in government, in culture, recreation.

' For text of President's message on trade, see Bulletin
of Feb. 12, 1062, p. 231.

" Address made before the Oklalioma Press Association
at Olilahoma City, Olila., on Jan. 20 (press release 49
dated Jan. 24).

' For Ambassador Stevenson'.s report to Secretary Rusk
on his trip, see Bulletin of Aug. 21, 1961, p. 311.

industry and all the other exciting areas of state endeavor
challenge young Oklahoma.

And young Oklahoma — looking back on a history which
but 50 short years ago was being enacted on the stage
of an Indian commonwealth — steps forward to meet the

Now there is another challenge which tliis State
and tliis nation must step forward to meet, and
that is the long-range protection of our freedom
tlirough relatively new devices such as our foreign
aid programs. I have been asked to answer the
question "Is foreign aid really necessary?"

This is a fair question, one wortliy of a thought-
ful and dispassionate answer. I would like at
the outset to approach it with a somewhat dif-
ferent question: What would the world be like
today if the United States had not provided for-
eign aid at the end of the Second World War
when nmch of Europe laj' devastated, when Japan
and the Philippines and other areas were strug-
gling up from the rubble of war?

West Germany and Franco A-ery likely would
have been lost, and with their loss all the rest of
Europe would be gone or in serious jeopardy.
Very [probably, had we not provided aid, our coun-
try and the rest of the free world would today


Department of State Bulletin

be in a vulnerable and even perilous position.
Indeed, mucli of what is now the free world would
have been taken over by the Communists.

I think it is safe to say that had it not been
for the Marsliall plan, the point 4 program, the
subsequent programs of the International Coop-
eration Administration — all now embraced in the
new Agency for International Development — we
would in 1962 be looking out upon this kind of
current world scene :

Italy and Greece would be firmly under Com-
munist control.

Iran would be a puppet state of the Soviet
Union and so, too, would Iraq. The rich Middle
Eastern oil fields would be lubricating Communist
industrial and military machinery.

Russia would control the Bosporus and would
be astride the lifelines of the Mediterranean.

India, all of Indocliina, Burma, Thailand, and
much of Africa would be dancing to tunes called
in Moscow. Latin America, even now threat-
ened, would be in far greater danger.

What U.S. Aid Has Done

Instead, West Europe is free and prosperous.
So is Japan. Most of the coimtries of Asia,
Africa, and Latin America are independent, and
their economies are improving. Instead of the
United States' attempting to stand nearly alone,
desperate for lack of supplies or markets or mili-
tary allies, we now have numerous strong and
loyal friends. Much of this has been due to our
foreign aid programs; not a single country which
has received substantial U.S. assistance has gone

You recall that in early 1948 large areas of
Greece were held by Communist forces. They
were at the gates of Athens.

Across the Adriatic Sea from Greece, a new
democratic government in Italy faced an election
in a chaotic country — an election which was nearly
won by the Communists.

Across the Alps in France there were mass un-
employment, serious disiiiptions of the economy,
unstable government. — and the danger of Com-
munist takeover.

On the other side of the English Channel, the
British people were struggling against terrible
odds to repair the dreadful damage of war all
across the island.

Western Germany lay prostrate, and the Krem-

lin moved to strangle the city of Berlin with tlie
blockade of '48.

It was a situation in Europe that was made to
order for the Kremlin, and the Kremlin made the
most of it by promoting strikes and riots, by sab-
otaging recovery through its puppet Communist
parties, by political maneuver, and by massive in-
jections of propaganda.

Elsewhere in the world the situation was not
less alarming. The forces of Nationalist China
were giving way before the Communists; the
French were fighting a desperate losing war in
Indochina; the Communists controlled much of
Malaya and the Philippines. In Indonesia a new
state was emerging with difficulty and uncertainty ;
the subcontinent of India had been divided with
millions uprooted and the long struggle for Indian
and Pakistan national security and stability was
just beginning; Iran and Turkey were imder
heavy Soviet pressure, with Russian troops still
in Iran. There were other areas of danger and
potential danger in the Middle East, North Af-
rica, and elsewhere.

This cliallenge had to be met by the prompt
exercise of resolution, determination, imagination,
and the expenditure of money.

This necessity mothered the invention of spe-
cifically tailored projects in the area of interna-
tional cooperation which we lump together under
the somewhat misleading label of "foreigii aid."

I say the title is misleading because it implies
aid to others without recognition that in aiding
otliers we aid ourselves.

It is clear, too, that the program has achieved
far more than merely checking the voracious Com-
munist appetite for infiltration, subversion, and
expansion. Even if there had been no Communist
pressure, there would be vastly more poverty,
hunger, ignorance, and disease had we failed to
recognize the need to share our technical and pro-
fessional know-how with less developed nations.

Take health. In 1950 malaria was prevalent
among about 1.2 billion people. By 1960 the dis-
ease had been completely eradicated in regions
with a total of 258 million people and nearly erad-
icated in areas with 66 million people. An addi-
tional 505 million persons were actively protected
by antimalaria operations. In the last 10 years
smallpox has disappeared from many areas. Yel-
low fever has been pushed back into the jungle.
Mortality from cholera and tuberculosis is rapidly

February 79, J 962


Other significant gains have been made in edu-
cation, food production, resource development,
transportation, and communications, thanks in
part to our foreign aid programs.

I don't want to become Biblical, but all of this
is like bread cast upon the waters. It has been
and will be returned to us manyfold by the multi-
plications of the military strength, economic vi-
tality, and the generally improved health, educa-
tion, and welfare of free nations.

Disparity Between Rich and Poor

Of the 3 billion people alive this year, 1 billion
are behind the Iron Curtain — a world stretching
from the Brandenburg Gate to the Yellow Sea.
There are 2 billion people in the non-Communist
world. Of this 2 billion, twice as many people live
in the economically less advanced as in the more
advanced nations.

Any child born today has, therefore, a 2 to 1
chance of being born in one of the less developed
nations of the world — in fact a 2 to 1 chance of
being born in a nation where the average per
capita annual income is less than $50 or $60 per
year. Such widespread poverty can no longer be
brushed aside as merely one of the less attractive
facts of life.

Apart from moral considerations we live in a
time when the disparity between the rich and poor
nations endangers the security of the world.
Modem means of communication have made it
possible to reacli vast numbers of illiterate people
and to imbue them with new ideas and new hopes,
a new sense of unity and new expectations. The
last few years have seen the crumbling of old co-
lonial structures imder which millions of the less
developed peoples have lived.

The crumbling of these .structures, together with
the social changes occurring in the less developed
nations, has unleashed great new forces. These
forces spring from the eager desire of millions of
people to advance politically, economically, and so-
cially, and to do so as rapidly as possible.

These winds of change carry an enormous po-
tential for good or evil. They pose for the West-
em World a fateful question : Can we through wise
and generous policies assist in channeling these
forces toward constructive purposes? Or will
they be directed toward ends that are not only
self-destructive for the new nations but which can

place in jeopardy the most precious values of civil-
ization to which we are committed ?

Congress has declared its policy in this regard
in the preamble to the Act for International De-
velopment, under which the Kennedy administra-
tion has reoriented our foreign aid program, from
which I quote in part :

. . . peace depends on wider recognition of the dignity
and interdependence of men, and survival of free institu-
tions in tlie United States can best be assured in a world-
Tfide atmosphere of freedom. . . .

The Congress declares it to be a primary necessity, op-
portunity, and responsibility of the United States ... to
help make a historic demonstration that economic growth
and political democracy can go hand in hand.

Foreign Aid Not a Giveaway

Now no one in Government or elsewhere has
proposed that we convert the free world into one
vast asylum for the care of the underprivileged,
the underfed, the underpaid, or the underdevel-
oped. Under the new hardheaded leadership of
Fowler Hamilton, the new AID agency is stress-
ing self-help, is shifting emphasis from grants to
development loans — loans that are repaid in dol-
lars — and is emphasizing the value of education.
Programs are being worked out on a coimtry-by-
country basis with the aim of broadening the coun-
try's own efforts to strengthen its own economic
and social structure.

This is not now and never has been a "giveaway"
program. As a matter of fact very nearly 80 per-
cent of the amount our country spends on economic
aid returns here in the form of purchases of goods
and services from United States firms.

The record shows that money we have granted
or loaned to free- world nations flows back to Okla-
homa in volume, through purchases of pumps,
valves, chemicals, and oil-field equipment valued
in the millions of dollars.

The record shows that the return impact of our
overseas aid has been beneficially felt in Bartles-
ville, Duncan, Enid, Muskogee, Tulsa, and Okla-
homa City. In all these cities, and for Oklahoma
as a whole, our foreign aid program has had some
beneficial impact. But of course tliis benefit is
purely a byproduct, and the main impact has been
on the new frontiers abroad.

It is important to think of our aid program not
in terms of economic theorj', political ideology, or
sociological do-goodism. It is helpful to tliink in


Department of State Bulletin

the concrete terms of better health, better schools,
better industrial and agricultural production, and
generally better standards of living for all free
nations, who in turn become better customers for
our products — as we have seen from our steady
rise in trade with countries we have helped.

At random I have selected a few specific exam-
ples of gains made through various types of in-
ternational cooperation:

India. The cost of malaria to the economy of
India in loss of manpower, in medical expenses,
and in other ways has been estimated in the past
to be as high as $500 million a year. U.S. assist-
ance enabled India to more than double the num-
ber of its malaria control units in 3 years. Under
an accelerated program it is expected that the
disease will be virtually eradicated from India by

Israel. "With U.S. technical aid Israel's beef
cattle herd was increased from 1,000 head in 1948
to 15,000 head in 1959 ; the dairy cattle herd from
18,000 head to 44,000 head during the same period.

Lebanon. The fii-st high-grade milk, packaged
in paper cartons, to make its appearance in the
Middle East went on the market in Beirut in 1956.
It came from new, modern, commercial pasteuriz-
ing plants set up as a result of interest aroused in
modern dairying by a U.S. technical assistance

Korea. In the Republic of Korea a nationwide
smallpox inoculation campaign, in which a million
and a half children were inoculated, helped bring
about a drop in smallpox cases from 10,085 in
1949-51 to only 5 in the first 9 months of 1958.

Ethiopia. A simple change to row planting of
corn, taught by U.S. technicians, instead of broad-
cast planting increased production from 18 bushels
an acre to 30 bushels.

Taiwan. U.S. aid to China in 7 years boosted
railway passenger mileage 72 percent, freight ton-
nage mileage 96 percent, highway passenger mile-
age 340 percent, and highway freight tonnage
mileage 280 percent.

Philiffines. The Labor Education Center of
the University of the Philippines, established in
1954 with U.S. assistance, has sponsored more than
60 workers' education seminars. More than 3,500
trade unionists were trained in such subjects as
trade union administration, labor legislation, shop
steward functions, grievance procedures, and
labor-management relations.

Turkey. With U.S. aid a network of some
17,000 miles of all-weather road has been put into
operation. The U.S. Bureau of Public Roads di-
rected on-the-job training for some 3,000 Turks,
and nearly 100 engineers and management per-
sonnel have been trained in the United States.
The cost of transporting produce and other ma-
terials by motor truck in Turkey is figured now
at 10 cents per ton-mile, compared with $1 per
ton-mile by oxcart.

Necessity, Opportunity, Responsibility of Aid

To sum up my answer to the question of foreign

Basically it boils down to three words: neces-
sity, opportunity, responsibility.

The necessity. Freedom is threatened around
the globe by a combination of three factors: (1)
the rising expectations of nations newly awakened
to the possibility of a better life, (2) the inability
of many of their governments to meet their in-
sistent demands for progress unless they get some
outside help, and (3) the persistent pressures by
the Communists to exploit and take over these

Without outside help many of them would suf-
fer economic stagnation or collapse, chaos or revo-
lution—all of which invite a takeover by a dic-

If we are to keep these underdeveloped nations
from falling under totalitarian control, we must
help them. For the free world to lose them would
mean not only tragic human loss but it would also
mean :

— the weakening of the free world and the
strengthening of the Communist world ;

— the gradual loss of U.S. friends abroad and
our eventual isolation ;

— the loss of key commodities and materials for
which the United States and other free nations
depend in large part or in whole on imports;

— the loss of markets for U.S. goods.

We need, as the President has said,^ first of all
to be economically and militarily strong in this
country. We need also strong and free allies.
And we need countries, whether committed to us
or not, who are independent of Communist

• Ibid., Jan. 29, 1962, p. 159.

February J 9, 1962


If we make wise use of our resources and our
intelligence in the next decade, we and the other
"have" nations are capable of helping more than
half of the people of the underdeveloped nations
to get on their feet economically so that they will
no longer need large amounts of outside aid.

We have the opportunity, too, to create ever-
expanding markets for U.S. goods and opportuni-
ties for U.S. investment. This means more jobs
at home, better business.

Finally, we have the opportunity to create a
world in which tensions are reduced and true peace
can flourish.

We have a great responsibility to do what we
can to help the people of these nations in their own
striving for a more decent life and to help pre-
serve them from totalitarian takeover. We have
spent $85 billion on foreign aid in 16 years; this
has helped preserve the free world.

The average annual cost of these aid programs,
economic and military, has been around 1.5 per-
cent of our gross national product — a relatively
modest amount of insurance, especially consider-
ing the grim alternatives.

I think we should be at least moderately opti-
mistic about the days and years ahead. We, and
the increasingly effective association of free peo-
ples, have the will, the resources, and the capabil-
ity constantly to strengthen our position. We
have already dramatically shown what can be
done through free-world cooperation since the end
of the last great war. We have far greater poten-
tial for progress today.

Austria Makes Additional Pension
Payments to Former Persecutees

PreHS release 61 dated January 29

The Department of State has received informa-
tion that the Austrian Government has now made
arrangements for the payment of pensions to
former employees of the Austrian Social Insur-
ance Institutes retroactively to May 1, 1950, on
the basis of article 26 of the Austrian State
Treaty, irrespective of whether the claimant had
at that date fulfilled tlie normal pension eligibil-
ity requirements (age, disability) under the reg-
ulations of service.

Payment of such pensions has heretofore been
subject to the claimant's meeting the normal pen-
sion eligibility requirements mentioned above.

Beneficiaries who are receiving pensions at the
present time, who have not heretofore received
retroactive payments for the full period dating
back to May 1, 1950, may wish to contact the
social insurance institute concerned.

Congressional Documents
Relating to Foreign Policy

87th Congress, 1st Session

Impact of Imports and Exports on Employment (Steel
and Aluminum). Hearings before the Subcommittee on
the Impact of Imports and Exports on American Em-
ployment of the House Education and Labor Committee.
August 14-21, 1961. 330 pp.

Investigation and Study of the Administration, Operation,
and Enforcement of the Export Control Act of 1949,
and Related Acts. Hearings before the House Select
Committee on Export Control. October 25-December 8,

1961. .584 pp.

Food and People. Two study papers prepared for the
Subcommittee on Foreign Policy of the Joint Economic
Committee. November 30, 1961. 74 pp. [Joint
Committee print]

Foreign Economic Policy. Hearings before the Subcom-
mittee on Foreign Economic Policy of the Joint Eco-
nomic Committee. December 4-14, 1961. 524 pp.

Study Mission to Africa, September-October 1961. Re-
port of Senators Albert Gore, Philip A. Hart, and
Maurine B. Neuberger. January 14, 1962. 18 pp.
[Committee print]

87th Congress, 2d Session

The State of the Union. Address of the Presiilent before
a joint session of the Senate and the House of Repre-
sentatives. H. Doc. 251. January 11, 1962. 13 pp.

Study of Foreign Policy. ReiJort to accompany S. Res.
246. S. Rept. 1118. January 15, 1962. 3 pp.

Regional and Other Documents Concerning United States
Relations With Latin America. Materials prepared for
the Subcommittee on Inter-American Affairs of the
Hou.se Foreign Affairs Committee. January 15, 1962.
204 pp. [Committee print]

Refugee Problem in Hong Kong. Report of a special sub-
committee of the House Judiciary Committee. H. Rept.
1284. January 16, 1962. 49 pp.

Foreign Economic Policy for the 1960's. Retxirt of the
Joint Economic Committee with minority and other
views. January 17, 1962. 50 pp. [Joint Committee

Reciprocal Trade Agreements Program. Message from
the President. H. Doc. 314. January 2."), VMVl. 13 pp.

Investigation of Immigration and Naturalization Mat-
ters. Reiwrt to accompany S. Res. 263. S. Rept. 1144.
January 25, 19(i2. 7 pp.

Authorizing the Purchase of United Nations Bonds.
Message from the President. H. Doc. 321. January 30,

1962. 3 pp.


Department of State Bulletin


Calendar of International Conferences and Meetings^

Adjourned During January 1962

U.N. ECAFE Committee for Coordination of Investigations of the Phnom Penh, Cambodia . . . Jan. 3-8

Lower Mekong Basin: 16th (General) Session.

CENTO Scientific Council Lahore Jan. 4-5

IMCO Maritime Safety Committee: 5th Session London Jan. 8-11

CENTO Symposium on the Role of Science in the Development of Lahore Jan. 8-13

Natural Resources With Particular Reference to Iran, Pakistan,

and Turkey.

GATT Cotton Textile Committee: 2d Ses.sion of the Technical Geneva Jan. 8-13


WHO Standing Committee on Administration and Finance . . . Geneva Jan. 8-15

U.N. Special Fund: 7th Session of the Governing Council .... New York Jan. 9-15

U.N. Trusteeship Council: 28th Session New York Jan. 10-11

FAO Special Meeting on Desert Locust Control in the Eastern Rome Jan. 15-19

African Region.

U.N. ECE Inland Transport Committee: 21st Session Geneva Jan. 15-19

CENTO Economic Experts Ankara Jan. 15-20

OECD Economic PoUcy Committee: Working Party III (Balance Paris Jan. 16-17

of Pavmeiits).

OECD Oil Committee Paris Jan. 16-17

WHO E.xecutive Board: 29th Session Geneva Jan. 16-30

OECD Tourism Committee Paris Jan. 18 (1 day)

NATO Petroleum Planning Committee Paris Jan. 18-19

FAO Desert Locust Control Technical Advisory Committee: 10th Rome Jan. 22-26


GATT Working Group on Marketing of Butter Geneva Jan. 22-26

GATT Panel of Experts on Residual Import Restrictions .... Geneva Jan. 22-26

U.N. ECAFE Committee on Trade: 5th Session Bangkok Jan. 22-29

Eighth Meeting of Consultation of Ministers of Foreign Affairs of Punta del Este, Uruguay . . . Jan. 22-31

the American States.

OECD Economic Policy Committee: Working Party II (Economic Paris Jan. 23-24

Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 46, Jan- Mar 1962) → online text (page 60 of 101)