(SANITIZED)NEWSPAPER ARTICLES ON MEXICO, INDIA, PUERTO RICO, AND TIBET(SANITIZED)

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June 12, 1959
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Declassified in Part - Sanitized Copy Approved for Release 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 ? _ I .3 ? 1.A. a JUN 1 2 .159 MEXICO'S REMARKABLE PROGRESS A LESSON AND A WARNING FOR INDIA By ASOKA MEHTA Iwent to Mexico to understand the remarkable develop- ment achieved in the country: an annual rate of growth in the economy of 7% to 81 and agricultural production taking a lead in it. How is it done? I asked Dr Manuel Sanchez Sart?. Professor of Economics, Universidad Nacional de Mexico, if he thought Mexico had achiev- ed the .'take off", had moved from the stage of underdevelop- ment to that of a developing eco- nomy. His response was affirm- ative. How has this difficult transition been achieved? In many ways conditions in Mexico and India are similar, our problems comparable. Only Mexico has gone further on the road to development and its ex- perience therefore provides us both encouragement and warn- ing. So ricaht fact is the mate- rial, fronn?bplfilithe points of ; View,.?tharit"would be of im- mense help if the Planning Com- mission would send out a mixed team of economists and sociolog- ists to study the lessons. My stay in Mexico was much too short and though I met a number of informed persons my report must be treated as sketchy. Mexico is almost half the size of India and its population is nearly 35 million. The out- standing fact about Mexico is its proximity to the giant on the north, the USA. That proximity shapes to a considerable extent, for better or for worse, the des- tiny of Mexico. PEACE AND STABILITY Mexico has enjoyed peace and stable government for over a generation. In terms of Latin American conditions Mexicans enjoy democratic rights. The fact however remains that there is, in effective political terms, just one party, the Institutional Revolutionary Party that has con- trolled the administration for many years. Political pressures of democracy are not keenly felt, though they are slowly on the in- crease. Between 1910 and 1940 the em- phasis was on agrarian reforms. Nearly half the land was affected by the reforms, u here the big estates were broken un, small holdings set bp on condition that they were non-transferable by sale or mortgage and had to be 'personally cultivated. The other half of the lands were not touched because they then lacked elements of fertility. The agra- rian reforms set up the economic fermentation The quondom land-owners flocked to the capital and sought to turn their resources and skills to non-agricultural purposes. Everyone in Mexico traces the origin of economic development to the agrarian re- forms which incidentally sup- plies the political mythology of the nation. The high-water mark of this phase was the administration. of President Cardenas (1934-40). It was then that the petroleum industry was nationalized. With the next President, Camacho, a new emphasis developed. Indus- trialization and increased pro- duction became the immediate national goal, and foreign invest- ment was encouraged by the Government: "Less attention has been given in recent years to how the pie is sliced, and more em- phasis is being put on produc- ing a bigger pie." Me:sico has made great pro- gress on many fronts since 1940. During 1939-54 the volume of agricultural production increased 155% and industrial production increased by 76%. There has been a real break-through in agricultural production For ex- ample, between 1950 and 1955 the population increased 15% (a very high rate of increase) and the gross national production rose 27%, but the agricultural production increased by 43%. Almost everyone I talked to seems agreed that the impulse for economic expansion came from the industrial sector, and in agri- culture it was spread by the Government's devoted efforts at expanding irrigation. Initially, the Government spent 80% of their investment in agriculture on irrigation, mainly construc- tion of dams, etc, that is, large- scale irrigation. Later, it was realized that much greater results would ensue if the same invest- ments were spread on medium and small irrigation. The em- phasis has now shifted. Irrigation facilities, particular- ly sinking of deep wells, changed the position of lands in the north that had escaped redistribution. A large part of 1.3 million hectares of irrigated land creat- ed in 1940-55 were added In the north, and there the use of trac- tors jumped up from 4,620 to 55.478. Cotton production increas- ed 462?;. and a crop of agricul- tural millionaires (in peso of course) appeared. The lands that had escaped reforms, and that were often in the hands of thv. post-revolutionary elite, made the spurt. The attention of the adminis- tration is mostly directed to the productive sector in agriculture For instance, the yield of corn, the staple of the poor, has not gone up very much. When I asked Arnaldo Lerma, Director, Fede- ral Agricultural Extension Ser- vice, as to what was being done to help the poorer peasants, his reply was: "The most revolution- ary step in Mexico would be to undo the reforms, but no one has the courage to suggest it. In Mexico agricultural reforms are the sacred cows!' PRODUCTION DOUBLED By bringing new lands into cultivation wheat production has been doubled in three years, but again through large-scale efforts (The harvested area increased by 4.1 million nectares, or 69%, from 1940 to 1954.) While capitalist farming grows, the tiny farms work with traditional methods, and the gulf between the two grows. As many discerning Mexicans told me, the mistake made was that too much had been invested in materials and too little men. One has to build new men to sustain a new society. Some of the old sugarcane farms with the Complex of pro- cessing and manufacturing indus- tries were converted into co- operatives. They have worked well, because of the high degree of development and heavy capitalization. The other co- operatives?ejidoes?have en- countered rough weather. The co- operatives a:ave tended to foster corruption. To avoid concen- tration of control, the law laid down that no one can be re- elected in a co-operative. The result has been constant split- ting. I was told that some co- operatives had split three or four times in succession to evade the law! Other laws passed to help the weak 'nave tended to breed cor- ruption and add to the burdens Of the poor. Agricultural mar- keting, has worked in that fashion, so also laws against transfer of cattle. The toll of corruption makes a mockery of most legislation. Industrial development spread from production of "ubiquitous goods" like beer, wines, cotton textiles to other consumers', in- termediate and producers' goods. As soon as a new industry is established, tariff walls are set up, often prohibitive import quotas Introduced. I was how- ever told that nowadays the rate of protection is lower, and the Mexican industries are facing competition. The tax rates are low. Only about 8% of the national income is gathered up in the exchequer. New industries enjoy a fairly long period of tax holiday. The profit margin tends to be large. Manuel German Parra, a leading Mexican economist, has shown that in 1955 one- hundredth of the gainfully em- ployed population took 66% of the national income, while the remaining 99% of the popula- tion received only 34% of the income; in 1940 the distribution had been exactlo the reverse. MODERNIST OASIS A recent Fortune article stat- ed, "Indeed, it might correctly be said that the true hero of tha Mexican investment boom is the ordinary Mexican worker, whose acceptance of a declin- ing real income has in effect 'subsidized' mucn of the nation's bu:iding ... It is a token of Mexi- co's political stability that this programme of chronic inflation has been accompanied by no political disorders or even by any noticeable diminution in the popularity of the party in power." I inquired as to how this could happen, I was told that while an individual's real income may have gone down, due to rapid increase in total employment.' family incomes had remained as high or sometimes higher than before. Sr Manuel Alvarado, the bril- liant economist of the Financiera Intercontinental S.A., had an- other or additional explanation to offer: Anything between one- seventh to one-fifth of Mexico's population is in the capital city and its environs In spite of the State being Federal, the administration is highly central- ized, as is the ruling party, and the 29 federating States have little real power. The energetic. people, the potential opposition, flock to the capital. There the Government maintains a modernist oasis in an otherwise traditional economy. Transport is subsidized, hospitalization is first class, educational oppor- tunities great. In short, the capi- tal is provided with conditions of welfare and the periphery per- mitted to shift for itself. TROUBLE COMING My reading is that Mexico's halcyon days are coming to .an end?unless of course U.S. capi- tal flows even more abundantly (to-day from 10% to 15% of the national income comes from across the northern fron- tier)?and the time of trouble is round the corner, The recent crop of strikes has, as it were, served the notice. Mexico's development has been spectacular but it has not besn balanced, In social and politic- al terms While it can provide us with many significant hints, it has a lot more warnings to offer: The growth of agricultural pro- duction has enabled commercial crops to provide 60% of the exports?that is what should be in a developing country. On the other hand, that trade and services should account for 40% of the national income is indi- cative of maldevelopment. Our Prime Minister must realize that if the Left proves ineffective, the Right, often from the same 'party, will take over A lopsided development can in- crease production, provide op- portunities to the energetic but can condemn the mass of peop:e to distress. There is the con- stant danger of development of the Centre occurring al. the cost of the extremities. Hence the need for well-planned counter- vailing measures which are the core of democratic socialism. STAT ? TAT STAT Declassified in Part - Sanitized Copy Approved for Release 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 STAT Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 ?.? ? T.T3:-N " I JUR 1 1959 FASCINATING AS-15-EQ- OF PUERTO RICO 't SMALL ISLAND DOES BIG ? BUSINESS By ASOKA INIEKTA pUERTO Rico is a small island in the Caribbean cluster, with a population of 2.3 million (with 900.000 more in the USA), that has worked out Common- wealth relationship with the USA. The story of the fight over status is well described in a recent book, "Puerto Rico Middle Road to Freedom". by Carl J. Friedrich of Harvard University. The question of status is still the main issue in politic&: the two Opposition parties are known as the State Party and the Independence Party. Puerto Rico has essayed a re- markable development., With its bootstrap, it claims to have pulled itself up to the path of expanding prosperity. There are some special advantages that the island enjoys, such as the large immigration facilities to the USA and its inclusion in the tariff-free market of the USA which also enables it to at- tract vast capital. But there are enough tools and techniques shaped in Puerto Rico that are ? of intereit to us. The Governor, 'Luis Munoz Marin, is an outstanding person ? by any standard. He has the genius to collect round him gifted men of divergent capaci- ties ?and orientations and to orchestrate them through his many-sided personality. The key instrument of development is the Planning Board which has a staff of 450. How many of our States have,, sought to have a brain trust of this kind? More than in the USA, in India the egg-heads are suspect' KEY. INSTRUMENT . The miin impulse Pr deve- lopment has come frcim industri- alization, mainly sponsored in- dustrialization The Economic Development Administration has a flexible instrument for this task. How great a role the EDA?"Fomento"?plays is brought out by the following table: mAsaIrAcTusimG NET INCOME PRODUCED (In of Dollars/ Fiscal Sugar ? Fomento All ? % ' Years, Tobacco P1ant1. Plants. Fom e. o,d ento fr,thistries. 1950 312 83 846 93 1951 37 6 12.6 106.5 11.8 1952 36.5 138 113 8 i36 306 131 1 33.3 45.4 144 8 314 550 151 4 363 75.0 175.3 42.8 1953 353 1954 363 1955 33.5 15*6 33.8 Inc.'ease from 195o 8.3% 814.65 107 2: The Fomento is a promotional organization Often when a new industry is promoted. the Fom- ento staff that was working on .the project joins the new enter- prise. The Fomento likes such rapid turnover. INCENTIVES Various concessions are offer- ed to entrepreneurs. an greater incentives are offered to those who would take their plants in- to the less developed parts of the island From 1950 to 1953. the Metropolitan Area, with about 33'e of the total popula- tion. had 46'.. of the new in- dustrial jobs. So Fomento began to offer standard factory build- ings at lower rates of rental out- side the Metropolitan Area and , to offer special incentive pay- ments to firms to locate plants in smaller and less accessible ? areas. During the next three years, the Metropolitan which by then had about 367c of the population, gained only 21% of the new jobs. FOI1LNITO FACTORIES 1950 1956 In'r:r. ease No. Nn Zor.es I and II 42 167 300 Zones III ar-d IV 32 125 290 ?cneV 10 SS 450 54 347 The return on Zone V build- ings (4.9%) is 28% below the return on other standard build- ings (6.8%). In addition to this rental subsidy, special incentives have been granted. between 1953 and 1956, to 25 firms to secure their establishment in Zone V. The total ss.bsidv_.used in the effort to 41.Et firs to locate V pis amounts to about ,000. ROM'S - - Puerto Rico has a high birth- rate and mortality rate of enter- prise. Between 1949 and 1954, more than 1,000 manufacturing establishments were started, about the same number of plants shut down in the same year. But there was qualitative change? bigger and stronger firms capable of making higher pro- fits and paying higher wages came up, the more inefficient went to the wall. Per worker in- vestment increased by $1,000., Such a turnover, while demand- ing constant adjustments from the entrepreneurs and workers, 'denotes progress. The key role in this has been played by the research division of the Fom- ento which continuously works on different industries to im- prove productivity. The rate at which the income generated by Fomento's program- mes has advanced is very rapid. The rise from about $19 million to $131 million amounts to near- ly 700% in five years, or roughly 50% a year. compounded annual- ly. In 1949-50, these program- mes accounted for less than 3`1, of the total Commonwealth in- come. whereas .five years later the', generated 13 of the total. The Fomento programmes? have, in the past five years made a net contribution to the Treasury of about $53 million. In 1950-51, an expenditure of $1.3 million yielded $9 1 mil- lion in Government revenue. a 276"; return In 1954-55, an ex- penditure of $5 3 million yield- ed $23 million, a return of 430". In rural areas, community education is separated from pro- jects administration. The staff of the education directorate there is able to stimulate and lead the people. The self-help housing schemes are not only changing the face of rural com- munities-25c-, have been so re-housed and electrified?but the scheme is so organized that all the people in a rural community work on building their houses, where the land is provided by the Government, building mate- rials supplied on long credit by the Government and the labour supplied by the community, in unison, and no one is allowed to break out of the community's rhythm of construction. SPANISH RENAISSANCE There are other fascinating aspects of the island, some rele- vant. other unreiated to our con- ditions. There are advantages available to Puerto Ri:o that cover up the mistakes, But the fact remains that it is a centre of Spanish renaissance By choosing to be the cross-roads of two cultures?Spanish-speak- ing and English-speaking? Puerto Rico has made itself fecund in many directionc. It is not an accident that the Nobel Laureate of Spanish literature. Juan Ramon Jimenez, whose magnificent translations of Gurudev Tagore's works has made the poet so familiar to the Spanish-spealdng world, has sought his final resting place in the island commonwealth. Puerto Rico can be a magnetic spur to many of our States. Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 JUN 2 0 1959 NEW LIBERAL SPIRIT ASTIR IN-TFTE UNITED STATES DISCERNIBLE CHANGES IN A FABULOUS LAND By ASOKA MEHTA IT is usually dangerous to generalize about a country on the basis of a short visit. But I believe it is less dangerous in the case of the USA than perhaps any other country of comparable size. I spent nearly four weeks in the country, travelled from coast to coast, and met scores of people in different walks of life. Surely the impressions made by them, if they fall into a pattern, cannot all be wrong. A new liberal spirit is astir in the country. The tired Ad- ministration (or the lack of it. as many people said in the States and in England) does not represent the emergent mood. But then we often feel the same way about our tired, old men in New Delhi. As one of our Ambassadors once said to me. "It is surprising that the country still keeps going!" There is much more buobling vitality at the grass roots in the USA than in India. 11UNGEtt fOlc r,DUCATION The most hopeful group in the USA as in most countries are the students. There is a tremendous hunger for educa- tion, and the young people are looking at the compieuc world not win Irritation out as offer- ing possibilities of enrichment. More and more the young peo- ple realize that if the whole world was shaped in the Ame- rican image it would be a very dull place indeed! Every year a million students visit the U.N. headquarters in New York. The skin of the McCarthy era is definitely sloughed, and the new skin is growing. As it 16 true of the Soviet Union, so it is of the USA?unnerstanding from the rest of us can help to shape the new skin. The hope- ful indications are many in toe USA. There is a climate that is responsive to us. I hope we send a new team to the next U.N. General Assembly to bene- fit from the situation. It is not necessary, and it would be un- wise. to compromise on our principles, but it is possible to feel triendly, and we need to do it. In the States, among best- sellers is a book called The tuglit American, which describes American diplomats abroad Perhaps they are ugly; I do not , know. But few Americans are ' ugly in their behaviour indivi- dually. It is only collectively that they tend to be conformist. though even that hard crust of ice is slowly thawing. The Ame- rican politician tends to be responsive?"give the consumer what he wants". Hence, while the USA needs responsible lead- ership, it is not easy to provide it. This emphasizes the value of understanding the ground- swell of public opinion. MANY TfiEstiS WRONG There are many things wrong with America. The family is losing its close-knit character The man is being domesticated. , The children tend to be treated fraternally rather than patern- ally by their parents. The child- ren feel left out?hence girls start dating at 11 and the normal age of marriage is 17 to 13. The authority of the father has suffered obsolescence. In this fabulous land. 2.5% of families still have incomes below $3,000 a year. In fact the picture of poverty in America is even darker; there are 6.5 million families (over 157s of the total) with incomes under $2,000, including 2.8 million families with less than 51.000 a year. As the cesspool of pover? ty is mostly in the South. racial !tensions have an economic basis. Many of the poorest are to be found among the coloured people. Overthe past five years. the difference between what Ameri- ca's halting economy has actually produced and what it !could have had with full pro- duction. full employment and full utilization of the obvious poten- tialities for growth, would amount to more than $200 ? hillinn (or equal to over five months' current production). So much for the lax policies of the present Administration. But there are many attractive features .of American life. Peo- ple constantly talk about the racial problem. Discrimination rankles in the people more than similar Injustices do with us. The negroes too are articulate. there is not much docility left. The universities play a very important part in the life of the country. A professor's is a highly respected profession, winch we cannot say of our country. University men are consulted everywhere, and the univer- sities recruit men from every walk of life. As Prof Slichter has shown, ever-increasing amounts are being spent on re- research and development which directly or indirectly stimulate the growth of pro- ductivity. Such expenditure in- creased from $900 million in 1941 to $8.25 billion in 1957? a ninefold increase. And much of this is being used?and fruit- fully?in the universities. Of course, one finds men in edu- cational institutions whose job is merely administrative, who are concerned with raising funds and whose scholarship rusts. The Foundations play a vital role. Much fresh thinking is financed by them. They are not run by the business houses that set them up (as is the case in India with the Tata Trusts and the Birla Education Trust) but by independent Boards. ofton manned by men of courage and vision. At least here tha egg- heads are not despised' The use of wealth is being institution- alized so far as the big Founda- tions are concerned. Whether such persuasive influence will be good in the future remains to be seen. NEW PROBLEMS The technological revolution is creating new problems for the USA. The following table makes interesting study: The Americans need to re- plan their economy?fewer hours of work, better social se- curity, greater drafts on their generosity, and that leads to Elzht months Recmery of after low-point Product.on loss Oct. 1549 June 1950 128; AuZ i554-Ari 1965 to% Az: 14.55-Dec. PAS 84% the crucial question of the fruit- ful use of expanding leisure and abundant production. The Ford Foundation has set up an Advanced Centre for the Study of Behaviourial Sciences. The AFL-CIO sent out a task force to study the problem? how not to make leisure frus- trating. A remarkable long- shoreman told me in San Fran- cisco that the USA was not a business man's country. If it was, we need not worry about the future of culture. "Look at what the Medic's did to their city". No, he argued. the USA is a worker's country, and the worker must learn to care for culture, otherwise there would be a sad eclipse of the trea- sures of the spirit. INNER STRAIN While wealth grows and gad- gets multiply, life becomes more strenuous. Labour is costly, and everyone has to do everYthing htinself?there are few service aids, except the mechanical ones that one has to operate. When someone wants to be friendlY, he will say "Just relax", meaning thereby that he will bring you Ycsir cup of coffee, or a drink, or wash the dish. The constant advice to relax indicates-a grow- ing inner strain. It is amazing to hear music everywhere and all the time?at railway stations, at airports, in hotel lifts, in taxis. The flow of music which few listen to and probably not notice until it sud- denly stops seems to fill/some vagrant, vacant mental need. But as against this the Ameri- cans are a remarkably generous people. It is not just that they have enough to spare. they have generous impulses that it would be churlish to deny. Dr Scherpen- berg. Foreign Secretary of the Federal Republic of Germany, told me that he often asks his friends whether the Germans would have treated their defeat- ed enemies as generously as the Americans have treated the Ger- mans. We have a right to cavil at many things American, but it would be uncharitable to ques- tion the generous nature of most Americans. GIFT FOR ADMIRATION We Indians are chary about admiration. We can flatter, we can be bitter, but spontaneous admiration does not come natural- ly to us. We do not know how much we lose by it: The Ameri- cans have a gilt for admiration. But they need to cultivate depths of feeling. This land of great open spaces has made the people extrovert; friendliness comes too easily and hence re- mains superficial. America would be a richer country if its people sought deeper veins of human contacts. Americans still have the frontier psychology hence the herd mind, the proneness to panic, the instinctive courage and warmheartedness. I believe it is necessary to help them to discover new frontiers. There are many frontier problems emerging in technology and social life. But the greatest of the expanding frontier beckon- ing our energies is not space travel but the growing human family. To transcend the exist- ing frontiers is to discover new frontiers. In this task there is no chosen race. In every country there are a few men and women who are equipping themselves as world citizens. When I said that a liberal renaissance is stirring in the States. I meant that such kindred spirits are growing there. With their frontier psycho- logy, they can be magnificent path-builders of tomorrow. NEED FOR PATIENCE American political institutions are peculiar As Walter Reuther pointed out to me. the Democratic Party can adopt with over- whelming support-4 1?the most liberal platform. The people can rally round it massively. But the institutional devices of the Administration are such that the ' minority can successfully baulk , the will of the majority. Trio Congress functions through its , Committees and by convention,i Chairmanships go by seniority.' and seniority invariably favours I Recovery of Per cent of re- employment covered produc- loss non loss per 1'. of Job toss. 72; I 40; 213?, 26; 3 the Southern (by definition die- hard) Democrats- Eut one has to take the ins:Alit, as as they are. If the pressure ,e public opinion can be sustained long enough, even these hurdles will vanish As we are patient with our peo- ple. so must we be patient with American institutions! The American is growing up. He is suddenly becoming aware of his South American neighbour. of Africa and of Asia With Latin America, as with Africa, there are special ties?next only to those with Europe. With Asia the relationship has to 'cc achiev- ed imaginatively. As we have to make a special effort to bring Latin Amerk within OUT focus of understanding, so has an average American to exert him- self to become aware_ of an A.s.an country Knowing these difficul- ties, is it too muco to expect that in the interest of good relaon.s between our two countries and our people we shall strive to meet the American at least half- way? American understanding of India is possible. It can be of, real hell in the difficult days ahead of us But on our part it demands some effort at sTrilPa- thetic tmderra--ellng of Amer:ca? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/02/26 : CIA-RDP81-01043R003800210002-1 .?. V ? STAT r` Declassified in Part -Sanitized Copy Approved for Release 1A-RDP81-01043R003800210002-1 STATESMAN MAY 2 1959 EXTERNAL AID FOR THIRD PLAN RESPONSIVE MOOD IN THE UNITED STATES By ASOKA MESTA T are e prospects of our getting the external Wfi th nance needed for our third Plan? In particular, how good is the climate for investment in India, in the public as well as the private sectors, in the USA? It is not easy to answer these questions in concrete terms, part- ly because we ourselves have not formulated our proposals. One can merely guess at the size of the next Plan and of its foreign exchange component. Assuming that we are going to have a Rs 10,000-crore Plan and I the foreign resources needed are likely to be five billion dollars 1 In the Plan period, do the pro- spects look encouraging? 1 Here again, one can comment only on the general climate of opinion in the USA because we ? have not come forward with ' firm proposals nor do we ex- pect 'the whole amount to come from the USA. We expect to get . five billion dollars from various currency sources?dollars, ster- ' ling, marks, roubles?and also from international organiza- tions like the World Bank. So far we have roughly received, for our first two Plans, foreign assistimee equivalent to 3.5 billion dollars of which 1.5 billion dollars has come from the USA, 0.5 billion from the Communist countries, and the remaining 1,5 to 1.7 billion dollars from other countries and institutions. The break-up of the next dose of 5 billion dollars we need will have to be somewhat different. A larger proportion can come from the USA. It is interesting to find that a growing section of the American people is slowly getting accustomed to the idea of a billion a year aid to India. BALANCED BUDGETS , Any suggestion of cutting off aid to India, as ex-Senators Knowland and Bricker tried to do earlier, will get no response. Knowland lost in his home State, California. by a million votes and that has its own lesson to teach. The purse strings, how- ever, will not loosen fast becaqse the Eisenhower Administration has made a philosophy of a balanced budget. As Dean Ache- son told me with some bitter- ness, it is the Bureau ot Budget and not the State Department that makes foreign policy in the USA today! Even those in Congress who are opposed to a more balanc- ed budget at the expense of eco- nomic growth, at lime and abroad, are not able to do much. As the new Senator McCarthy pointed out, the manoeuvrability left to the legislative branch is about three per cent either way! In the framework of a balanced budget the two main parties con- test to fit in the things they desire?the fight is over the dis- tribution of the cake and not over the size of it Senators Fuibright, Humphrey and Kennedy are seeking to amend the Mutual Security Act in various ways: first, to put the foreign aid programme on a long- term basis The suggestion is to agree to a five-year pro- gramme of 1.5 billion dollars a year. Secondly-, a greater flex- ibility is sought to be given in transferring funds voted for military aid to economic deve- lopment. It is desired to extend the transfer from 10% to 30% of the funds voted. The Sena- tors are confident about the adoption of the new principles they advocate, but the actual amount may be a billion or even less per year?and that would have to meet the needs of all the under-developed world! MALN OPPOSITION ' The main opposition comes from the House of Representa- I tives, and that for more than I one reason. The House is elect- ed every two years and the members are sensitive to the charge which the Republicans love to hurl against the Demo- crats,.that of being "spenders", Secondly, the American Congress works cniefly through Commit- - - ? tees. Positions on the Commit- tees, and assignments to import- ant Committees, go by senior- ity. Even though the Democratic Party, which has been adopting increasingly liberal platforms, has a decisive majority in the House, the key posts go to the Southern Democrats, who are generally die-hards. In the Party Conventions, these die-hards lose 4 to 1, but in Congress they are In a position to stall that very programme! For instance, Howard Smith, Democratic Chairman of the Rules Committee of the House, has been blocking a pro- gramme of welfare that the Senate has pushed through. verilY, there are far too many checks and balar.ces in Ameri- can democracy' The House therefore tends to be cheesepar- ing. The mood however is chang- ing, Senator Lausche, who was catapulted into the Senate from the House in the 1958 elections. recently said in the Foreign Relations Committee (of which he is a freshman member) that he had come determined to oppose the "nonsense" of foreign aid but the discussions in the Committee had made him change his views. A similar change in understanding is going on among a wider public. Presidential hopefuls like Senator Kennedy (and to a lesser degree even Nixon) can talk of a Marshall Plan for Asia and evoke sup- port. The American people are freeing themselves from the con- straint into which the McCarthy period put them. Their essential decencies and generosity can be appealed to once again. On this renaissance of liberalism differ- ent estimates are offered. The East and West coasts are hope- ful, but I am told it is the mid- West which still retains the old stance. While opinions vary on the extent of change, nobody doubts the fact of the change. OPEN DOOR IN 1961? The 1960 Presidential election will be important. It can prove as important to America's inter- national relations and to the energizing of world economy as the 1932 election of President Roosevelt proved for the USA. Given a courageous leadership the American people can be in- duced to endorse and partici- pate in an international New Deal. Both the parties are like- ly to put up Liberal candidates. While it would be foolish to spot the winner or even to dis- cuss the possible candidates, It is safe to say that from 1961 we may hope to find an almost open door to aid programmes. There are many who com- plain about the slow rate of growth of the American eco- nomy, just 2.7% a year. There are five million unemployed to- day. If only the economy could be organized to provide work for all of them, to remove the slack and hold back inflation! America's economy, which is nearing an annual production of $500 billion, can further step up output by $70 to se billion a year. Those who are plugging for such a policy in the USA are not happy over cur modest demands for aid. They feel that India should draw up a bolder Plan and confront the USA with the task of under- writing such deficits as might warrantably emerge. Dean Acheson, for instance, unfolding his ideas to me, said that in his view the USA should pick out India and Brazil and, as it were, guarantee their development needs. Walter Reuther voiced similar ideas. Fidel Castro, the new ruler of Cuba, seems to have taken this advice in his cnaracteristic Declassified in Part - Sanitized Copy Approved for Release CIA-RDP81-01043R003800210002-1 ? ? colourfulness and has asked for a $20 billion aid for Cuba! Mr Adlai E. Stevenson, as usual, has a realistic understand- ing. He feels that much of the aid provided in the past has not helped development and that has caused frustration in the lend- ing as well as the receiving countries. In his view there is growing disillusionment over purely military aid programmes. There is need for careful plan- ning?and that should bot be deemed as attaching strings. He told me that if the Western countries could all come to- gether in a consortium. Ameri- can aid could flow more freely and the Soviet Union challeng- ed to play its part in it. I believe that the more projects we have on tap, the more precise our blue-printing of the Plan, the easier it should be to get the aid we need. BETTER MOOD There is a somewhat responsive mood towards India today in the USA. The old misunder- standings obtrude less, some even feel a subtle attraction. It is possible and necessary to put across the real image of India to the American people. There is usually a gasp when one points out that the population of India alone is larger than the combined population of the con- tinents of Africa and Latin America. In the Senate the atmosphere is distinctly hopeful, tnougn leading Senators nave ditterent assessments of the quantum of aid. The House of itepresent- atives is more difficult, but the . changed mood in the country should make an impact on Con- gressmen sooner or later. Mr George Meany, President of the A.F.L.?C. 10, showed me the letter he had sent to Mr Dillon of the State Department urging help to India to set up a new steel plant. Such a demand can be backed with support not only from organized labour, but trom the wider public. There is some change in the attitude of the business com- munity. If in politics India's "neutralism" is no longer the estranging issue, so in matters economic, "socialism" is no longer the bogey man. Mr narriman, for instance, nas been speaking to business audiences explaining ana ae- lending India s rignt to be "socialist." As our Consul- Generai in New York was tell- ing me, some leading men from Wall Street are anxious to con- stitute a kind of Advisory Com- mittee to remove possibie mis- understandings and assure co- operation to those who may plan to invest capital in India. On the use cil surplus food stocks for economic develop- ment, the understanding of the public here is as immature as in our country. Today, the U.S. Government is spending $1.7 billion a year merely to store the surplus food and fibre that, unless quickly utilized, must deteriorate. Tne Soil Bank idea keeps coming up. The develop- ment potential that food loans can provide has yet to capture the imagination of the peoples concerned. The American Government and Congress might decide to send out a mission to India to study her needs as was done by the Herter Mission in Western Lurope before the Marshall Pjan was launched. Such a mis- sion, I hope, will have the wis- dom not to tell us what we should do, but it would be use- Jul to discuss with the compe- tent team that this is bound to be. our needs and our hopes. Given informed and imaginat- ive leadership on our part, we can in the next two or three years make sure of the foreign exchange requirements of toe new Plan. Mr B. K. Nehru can be relied upon to work that out. It would then be our task to mobilize the moral and econo- mic resources of our people for that organizational leap for- ward on which ultimately de- penes the extent of our internal resources anti the size and the pattern of the next Plan. The sooner we are free from anxie- ties about external needs the fuller will be our attention to internal mobilization of re- solaces. 50-Yr 2014/02/26: STAT Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 T :74ES OF INDIWEsDAY. MAY 26, 1959 A TRAVEL DIARY-I Deep Concern Abroad Over Tibetan Affair By ASOKA MEHTA ON the flight from India in the last week of April, Mr. Boris Litvinoff, a Belgian journalist of Russian origin, started discussing with mc the intellectual ferment in the Soviet Union. He said newspapers like the Pravda did not convey the real state of af- fairs. It is ncccssary to read the specialised journals to discover the scintillating discussions that arc going on. He regretted that intellectuals abroad were not carrying on a fruitful dialogue with the Russians. Mr. Litvinoff was returning from a visit to South Viet Nam and he told me of the intense agitation in that country over developments in Tibet. University students were anxious to organise international brigades to lend support to the Tibetans. Prof. Asulkar of Nagpur Uni- versity on his way to deliver lec- tures at Cambridge discussed vari- ous problems of public health. He was most excited over the discov- ery of Hexa-decarrol that can pre- vent (to the extent of 40 per cent.) loss by evaporation of water. Its implications, not iust for rural areas and small irrigation, but for urban areas with their growing populations and constantly chal- lenging problems of water supply arc obvious. Mr. Sadulla Mir, Speaker of Kashmir Legislative Assembly, on his first trip abroad to study par- liamentary institutions proved as inquisitive about the outside world as he was informative about Kash- m tr. AFRICAN RIVALRY In Rome Mr. and Mrs. Silone came to the airport. Ignazio SsIone is an outstanding writer of Italy with an international reputation. Mrs. SiIone told me about a con- ference then on in Rome? Presence A fricant. She said that at that conference where African intellectuals from many parts of the world had gathered together, those from French Africa looked down upon those from British Africa as "barbarians." The Afri- cans with French intellectual and cultural influence made long and eloquent speeches. A group of intellectuals from Ghana after a surfeit of such expositiorr of the "African personality" summed up the matter tersely: "Cadillac plus Cocaeola!" In London lunched with Mr. Albert Carthy. The Secretary- General of the Socialist Interna- tional told me about the major developments challenging Franco's position inside Spain. We dis- cussed the two recent splits in the French Socialist Party and about the deep terment that has started in it over Algeria. He told me that in 1..-ragua. in South America the Colorado Pan!, a liberal socialistic party, had lost to dye Conservative Party after 95 scars ot uninterrupted tenure of office. nRr.lassified in Part - Sanitized Copy Approved for Release I wondered if Mr. Masanits Con+ servative party would have that much patience in our country! At Mr. Hugh Gaitskell's, I mei Mr. John Strachey, Mr. Woodraw Wyatt and other old friends. The Burmese Ambassador was also present and the discussions rang- ed almost exclusively round Tibet. Nepal and Burma. The result was that we never came to dis- cuss the forthcoming elections in. the United Kingdom! The lead. era of the Labour Party were deeply concerned over the cam- paigns started by Peking against India. There was general scepti- cism about Moscow's ability to restrain Peking. U NU'S PLAN From friends who had met U Nu, both in London and in Washington. I heard of his plans to launch satyagraha on his re- turn to Burma. "I shall be in jail soon," was his frequent ob- servation. While he had little to say against General Nc Win, ho was critical of the colonels. To justify his proposed fight for democracy. U Nu described hit former colleagues, now in the "stable" faction of the AFPFL, as "fascists"! DinCd with the socialist histo- rian Julius Braunthal. This warm- hearted and erudite writer, who grew up in Vienna in the hey- day of Austrian socialism under Bauer and Adler, has been en- trusted by Mrs. Margaret Cole with the task of completing the monumental History of Socialist Thought begun by the late Prof. G.DiL Cole My first appointment in \\ ash- ington was with Mr. Dean Ache- son. the Secretary of State under President Truman He outlined his "Acheson Plan" He feels that. the US. should select two or three key countries?his choice would be India and Brazil?and underwrite their plans of deve- lopment. He said their export earnings should be guaranteed. If due to market fluctuations the earnings drop, there should be provision for prorortionate sun- port from the U.S. He felt that a-iv hold mote of that kind mi: t await the return of a Democra- tic administration. President Eisenhower. in his opinion, is good at execution but unsure in deciding big policy issues. Gene- ral Marshall used to say. said Mr. Acheson. that the gift of ouick decision is the rarest of all. His recipe was? we the pros and cons and if the pros tip the scales forget the cons and to straight ahead. Because of Pre- sident E;senhower's constitutional aversion to reaching difficult de- cisions. Congressional luck-T.4110 by itself cannot achieve meta Mr. Acheson called the de. z- latynentt in Tibet a blunder for China. He saw little hope of any STAT 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 If Declassified in Part-Sanitized Copy Approved for Release @ 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 - , restraining intleenec working :from Moseutvt.,influerteerwiarks-theother `sgettl?Fhe'4iIel.Hir,felt: that .11? thel.?,Tibetan', revolt ha crushed tiod'i;;" &tett cal fe. -The -,Conumunisti a tobgh4problem" t;a1Waysrdeelit'SeUtuientl.J.'to ' meet4ste,vandlMreCtiester;11044:, es. They are enkiyingPti,r fresh.' ?cinarreGon to ingtoit:- Bowlea::,told:intelhow ; ? wheitlhe"; wag Ambassador :tin New ? DelhW=!,-PresIdent 'i,.-3:Trurnart: had told him that.? if :he',1,..nsuld6r,'.!14.1o? lt eithire'f, Dean g?Achison"orAvereli Hattimad td"sbnport abla plea economicssuppert, thei.. Indian , plane he ''svould.,-$1 to it :',forth= with; ?Then nett, ......;'Achesitri."-:rint w01114.`41 Steef-%:i.TodaY houkiltrts..1'111,41nt -,forefront of.. the e flOwleCfeelithat-lthe change opinlch.. -:such.. that even Ketkefelle07gatia elected, as derilli1nl"19,60,1heit id .5`.,pnegitimme - Mr,Zt.litnvIes,:,deScribta the eiri U.S.:- . Pak sten/.4Milltar0 .paerKssas Grit titidijante..t.,;,PeW".. wantediti.kin ' Washington?yet : throuth'ireutious muddling,, and _.stellnie standings -1 got IstitAogether:1, Senator Symington. "the-, hand- somest Member of :the Senate." Is ,one ol the hopefult -for the Presidential race from . the .Demo. cratic stables. This ,former Air Seeretary has a deep 'understand. Ing or deftece problems. his ex- position', Oil the "missiles gars" betweeli'L U.S. and Russia _e?eommields7araltentltiti,'"."-- In other sinatterikhis. (elicit, Is. Aire._ Ha mentioned tai evasion' in the US.- About 25 to, 26 billion dollars ? escape the tax rict. NAT1O4AILN PLANNING I began the next day with a visit to the National Planning Association. Dr. Gerhard Coinc. the Chief Economist, has done apientled work- on projections. Bat I was mac Interested in the various 'studies. now under prepa. ration 'On the EcOnOmies bf com- petitive , Co-existence, The re- search projecteunder the director- ship or Henry G. AubreMpro.,, , ntises to be very Interesting'.'"' At the Twentieth Century Fund met Mr. Philip Mullenbach, Re- search 'Director in studies on Pre- . ductive Uses of Nuclear Energy. I fc has been in touch ,witheDt. Ilhabha but is ? critical various matters, abottr.put, npelear2:0911ey.. The.".'RePOrrott.'ilregi4oal 4EconnOtic Dettoeloppedjet and ,isluelear 'Power,' in, MAI lies ;41any?,' penetrating Criti. clams tO oder. c. SenatOr 1.Kentietly toOie$ charm and' drab Mism. It is posse 'of, sixteen i-,Secretariell and. n.- number of research,' assistants:: his ?Mee is a whirling dynamo. Ho has plunged.- ileeniy into promoting assured' aid for Out development. Discussed Ibb "delis Of Various amendments sponsored by Sena- tors Fulbright, liuntphrey ' and Kennedy to the Mutual Security Act of 1939. Who makes foreign policy?the State , Department or the ? Bureau oft. Bodgety-,...,3"hat ? is the questicO!, one: constantly COthC3 , aeress.1t...Washington,.t,,,, *rut= Is never,' as i4 il,';'Oenrgetownj,Univerity where ,Father Bernit.hadturrangcd 'a 1V,Ind4...rra4ietrogrlimrrict,for I. Mr. B:, K. Netieeind6rne:-.1"Nalf an hour's clisetissionion'Jildia'a ? deetiopmentcum theiTV.-Was use- ful. Father Benin"' sPent some months In Madras and has pro- dueud -interesting -study of ? clusters of small Industries grow. Ing tip ' In the Stat&` Began the last day of April with Mr. Victor Reuther of 4lits United Auto Workers. Ho is ;an old ,frientln ang outstandinftz, leader of labour and la, sincere friend of India. With him ' as everywhere, the talk started with Tibet. Then we moved on to the labour situ- ation in India and the US, As 1.11weYs, happens in every discus- siont with' trade unionists abroad the fi..INTUG-HNIS differenece becomei:ditIleult explaini'"! The structurall3chettges that leahnolo- fical ,;.,edeiintirszato bringing about in American?,ecencimy are. putting strains .4onethei, ilabour .? movement. Al.,thi:it'Imposituot;hbadetilartarA of thdv-Mtl.t...C.i.0met0T.Mr., Geot110-MdatVy.;:lio. has e,,thiti:: tallith hands .''eirk":,writkOr and ::Ith e stocky figure `,b a filthier.,1,1S1r.';?, Meinv on tictiait- of his great.:,,organisa. Bon has. additi' his,?wciahti, to the proposal ?canvassed ; here for Uni- ted Slates: help ,,,5,11.1 tsetting pp a new steel"- plant tri"lndia. MR I II,MIPIIREI"S I)EFEAT 401/7v=a647----" .1117,13/ friends-inr New. Delhi-.11 , study `iif,taistioni`Poilibilities in India, r,,' P?itjl Molts. , the ibit 'representative from ,Illinois, ail.ed 9e-r, characteristic- question: Should recoinise Tibet?' "Ale disappointed at my reply; Since our last, meeting three years., :ag0,,e7;1..he become more7,14- terestedAn'Indial though this erni- pent,;;.:econtindst-ptilitician`s main prinficcupatior0 remains with pro- tittne. of economy.. He said TheSeriale:-,*ould-,'never count?, any move. to stop aid" to India:.',1":!, But le,'t impos.sibl& to Ussess,".:the" amount:, that,. might", be ietilible for, the. third; Man. The eltrriatei, apted,;Was''Improving, ,t`Nthrif -:,unneceisarilyIrritated the t.1.4?1,fil.,.? the "- .4iSielitt.'. Interesting two hours over lunch ?effth woad, bine editorial board of the ,WathingtOri Post. Mr. Friendly and .'r? Mt.EitabniSok's appreciation of. Ind Ian affairs '7;0d sentiment wa heart?Wartning." 'At' is good ..to know: ';..that.: thanks:, to the devoted labouts,of-otif.' former. Ambassa. doric L'-"Mehtav who is warmly., remembered in all qUar- tea in Washington, we have in the IV'euhingtOn Poo a depend. able interpreter. S. and E. S, WoytinSky. authors of ' the monumental work World, Population., and iion?Ttrndi and Outlook beet whin\ oUt with a neWt'stittly of. the economy.- : Therein.- it out. :Ned the. i!tiese- economic rhythm" of the US. 'and they advocate the appointinent, of weathermen-La kind of econOlities?radar?to watch events and forewarn the adminls. tratiOn against 'disturbing currents. It is amazing ,ltove much of macro. analyses and."' regulative planning lajwilling!to, go in for. whilnIstill2t..elinging,? ties its Bud!' tional,Nifolkioni.::that tr.., Makes the word 'Jibe FiultsetL'1,??', .Atthe.WorId Dank's I ? (sea ve red theref,,,Wat:f. a ?lot r. of.. humour In that awe.iunplring -: institution. 41,Ellistbit Taylor on Introdtleed one'. of the World" Bank spoke5rri?n.' 'gushed: "Ah. I would like to borrow some money."' Quick .came (lie reply: "We lend only .p.?,unttpr:ddvelopo Col-Minted) ' ? When I met Senator. Humphrey he had lust lost his fight for autonomous administration, for rural elWriticatioli. The Senate had overridden the President's veto. but in the House the 'veto fell short by four votes.. 'While we were discussing various mat. ten. a reporter rang him up and be blasted the administration: "Today on the Hill. there Is no separation of powers. etc." ,:.11e. is hopeful about the Development Loaa rands programme going through. It asks terra five-year "..-* programme of ? 1.5 billion 'dollars , a sear. Suith a fumi:yobld enable the administration' -to -.assure we'. , tamed assistance to plans abroad , Ile said that if mdii i.s Irotapeci- ? fically mentioned In 'the 'ion, it will be pre-eminently men- ', tioncti in the Report1,-.''S'Azil, that ahould?semr?our purpose.,:j 'told him ,,that:A.LS`"CongreSssatien had told OW of lheir doubti theta the measurett;jgoing,?? through' their lioulellelitid the Stnotti,vcrivid not alloWICtei',,be.',.turrit..?,;The , Demoeratia Inelority: in:the.Senste was determined to';,,clearCitnf, many polleles4,z;" Senator ...Humphrey expects to be in India this autumn. Talking about:.--ihtsrrearattion meeting' with Comiede, Khntshe.hcv ..heKtold,sor about the self-seereptioh 'of the Chin,L?se students in, Moscow. They were unifoindy?dolne, better than. the Russians which' provoked some tension, so instructions, liVere received from Peking not. to do too well in clams.'" eituld"i.uti- tierstand his tiredn'ess when he said that his day starts at ,8 a_ra. and cods well after midnight. I too have such a schedule to keep! usually` and I know wisat, it sates Cut at Ar I Sirs histrewsTest 1.4 o,Afting Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 I. ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 _ Conference.-Stre4ieAs 'India's Needs- Zy sof ioetheight reanows ? ,060kA; ENATOR remind.; Senator Kennedy ipoks uen . and sincerely: about the need for sustained and long teem' aid India.' Ten years after the Mar- shall Plan, he asked for similu imaginative gesture towards Asia. Tha idea of an assured aid "of a billion ,. dollars a , yous, to India. is 'catching the 'attention ,of the' peo- ple,In the' United States:':? - ,? Mr.13.'KstNehru'esurvey of our problems and prospects-. was cleat and ; held the interest of ?the audi- ence. -.His pereonality and, soothing voice , are... real assets to.usin.putting-pur case'for 'aid. Later.: Mr. Iengars; offered' a ; corn- prehensiVesurvey 4of the'structural changes 'mada,,ind ?desired'in In dian econoiny;,'?,which 'was" much ippresiaterL-. 2" ,The' most'' eloquent ' speech of the day was made-at the' luncheon bY Barbara' Ward -(Lady Jackson): "She 'Is -of course "the most, beautiful .of the economists, and- thd 'most' erudite or' the wo- men one knows. At her birth, fond fairies seemed to have show- ered ,upon, her every gift. Her presentation of, India's case in the world, setting ,was masterly. .But then she.always has her audiences In ,the palm of her hand. Only the previous evening' she had told me that 'in the vast six years dur- ing which she had often been to the USA. she -viewed the future with meth anxiciy. But now she felt reassured because .she saw be- fore her the stirrings of the revival of. Jeffetioaian ideals. She is a perspicacious;observer, arid her insight is. at once informed and intp As itive, Mrs. Sherman Coop- er later' said:. to me, in 1948 on the eve of the Marshall Plan. 11iiss Ward had foreseen the forthcom- ing awakening of the spirit of understanding. ? .At the evening banquet John D. Rockefeller III was in the Chair. Governor 'Harriman and I spoke on "An American view, of India" and, "An. Indian view of the U.S." respectively. Governor Harriman who had recently visited! India spoke with anderstaading and sympathy about ;India. My talk --.1-andI spoke for over 40;minutra ?that is?longer than anyb_ndy else a good humoured way poked fun at the snarly little foibles of the Americans.' Justice Douglas called my speech well meant earl- cater? and "t l. ;A- , on A ed me of the great. role former University teachers -play In .the Senate.' Many of the, top notch Senators, 'like.' Fulbright, -Humph- Dotiglas.'llsforse, are former faculty members, and what lustre they shed on. the legislative -pro- cess. Senator Fulbright 'is- the, 'chair- man ,of the Foreign -Relations Committee. , Hes is - a, magnificent liberal on' almost; all 'Issues _except racial discrimination. - ale comes from Arkansas,, where tthe 'racial conflict is being fought out. Mrs. Fulbright, an Intelligent and graci- ous, lady, talked:, about. thei incon- gruity' 'of ? thesame constituency simultaneously 4, electing el staxply dissimilar 'leaders.' %Perhaps she had in mind her distinguishedliu.s. band 'arid Governor Faubiis.: The iGovernor might rim against 'the !Senator in the 1960 primary, And ;in' that one party Stato?Democra- ' tic?that is a challenge which it Is not easy to meet., As, Senator Douglas, also coming up for re- election; said, before one can, work In the 'Senate one hit- to' ,stay elected and, as Senator' Pulbright emphasised, under the American system if your State rejects you, you cannot 'pt in from another State?as I in India am wont to do! Senator Fulbright is, 'a -scholarly person widely respected but for different reasons. Somebody sent for publication to his home State papers an advertisement hailing him, as an "egg-head," the Ameri- can equivalent of an Intellectual. The newspapers indignantly 'refus- ed to print it and informed the Senator that they had such deep respect for him that they did?not want to insult him by publishing such an advertisement! INDIAN STUDENTS Met and addressed some seventy Indian students working in Uni- yersitics near about Washington. A number of them work in our Embassy or the Supply. Mission. Noticed a considerahlo amount of discontent in their ranks at the way the work is organised. - Chief Justice Earl Warren is a delightful elder statesman. He has built up an enviable record of partisanship for civil 'liberties on the Bench. Ile, with his charac- teristic kindness, worked out my schedule for California, where he ' said his heart .still remains, Ile shared the view of another judge of the Supreme Court, Felix Frankfurter, that lt is wrong to confine selection of judges or the Supreme Court to members of the Bar or the judges of the High Courts. The Chief Justice said in different words what Mr. Frank- furter had told me: the questions coming up before the Supreme Court arc so comprehensive and of such social importance that I mere legal background is not enough. It would be wise to select ' walks of life also. The Chief men of wide experience from othcs Justice's own distinguished record is a pointed testimony to this advice. An official of the State Depart- ment told me an Interesting story of the days of McCarthyism. A person seeking employment had as his address _Walden Thoreau. Be- cause, of the verbal association with the 'exponent 'of civil resist- ance, the applicant was deemed to be a security riskl As Barris ' Wofford said the sole silver lining to the cloud was that the high-ups in the Department had heard of Thoreau) ? On May 3, discussed with Jus-, (ice Douglas and Congressman Judd the work of the Tibetan Re- fugee Aid Committee. Congress- man Judd being himself a doctor I had a keen awareness of the needs.' Ile had spent tcn years in China practising medicine among the poor. His wife was born. in Simla and has taught in ?a school in Kosialkanal. At the India and United States Conference-1959, which I have come here to attend. I found Mrs. Judd hammering away at a typewriter to help copy things for the organisers. When I said to her that in India we thought that in the U.S. such work was done by electronics. she en- gagingly replied "1 am the electro- nics!" Among the other honorary workers at the Contemnce I found Senator.. Morse's sistee and the at- trattille niece 'Of Senator Lyndon Johnson. That evening there was a large- ly attended reception given by Mr Eric Johnston At the Motion Pic- ture Association. A remarkable film of a self-revealing interview with Pandit Sehru shown there proved to be a great attraction. It was in extraordinary record. because Vhave oes'er before seen the Prime Minister enjoying a searching self-analysis. STUDY IN DEPTII Mr. Johnston is the Chairman of the Committee on internstional Eronomie Growth. 'It was orlon- isui, early in 1958 and. this Avii the first conference devoted to the study' of the development problems of lust one country, a study in depth. The' conference opened in the , glittering banquet hall of the May- flower Hotel About 700 pawns %he had come from all States of the U.S.A. attended the confer- cam. They had dome 'at their own mpense and t'aid 'led dollars each for the mistiest' of-attending the cooferersec-Tisesidm the extras for Ittemei?-,send....? dinner's. There were over, 200 -,busintssosers pee- most ? of - them 'acnior' execu- tives of banks and industrial 'cor- porations. The- re- maned :tinifitrrtrilY '-evro for two full class--?' - ? - ..Vicey.Prealdekt." 'Mum' !autu- nite() the' conference. IrCan, able speech he said that -the econOtrue development, weis.'as portant if, pot,more,'so than the Rerlin crists?a: truly bold, state- ment esti of the Foreign conference.?. at M Chs strut cal ,our ,00Aitinn9,'ici4 his charactertitioqly caricatures,", he added. It was i' heart-warming to hear the applause rising to a crescendo and the audi- ence getting up to cheer to the echo. That night and the next day I had to shake over SOO hands. 'I he Americans can be warm and generous in apprecia- tion. Some of them said I had converted them to Socialism) Next morning I had to get up early to be on DaVe GarroWay's 7 o'Clock TV show which is seen by between SiX to eight infilion Americins. The day was taken up with panel discuSsionS that had distinguished participants and deep- ly interested audiences. At the start, Mr. Chester Bowles made an able survey of American poll- cies at our stage of development and persuasively argued for ind- tuft! ?toidetstanding and co-opera- tion. At Ittneli the main speaker was Senator Humphrey, lic as- sured India that all the food sur- pluses she might require to accel- erate het economic development, Would be made available. The conference was adjudged to be extraordinarily successiul. An Indian thirty years resident in the US. who had attended every conference on India during that period hailed it Its most represen- tatixc and effective. Justice Doug- las told me that ho had suggested such a conference to President Truman ten years back. Ifc said India bubbled with ideas while the US. was in the_ grip of con- (emns+ of thought. He felt happy , that the climate of opinion was :at long last perceptibly changing. ' There was keen disappointment in certain quarters when they found that Indian speakers do not employ ghost writers) I was disappointed to read Pre- sident Eisenhower assuring Inas. .sive interest in Indies develop- mcnt but hedging on the question of massive aid. Lunching with Senators Kennedy, Kealipg and Cooper, 1 jvai assured that such ,eanicisions 'need not be taken at there face value. x - Met freSitmln Senator Harrison Williams of New Jersey. Ills Was a dramatic victory for the Deana crats in the last elections. It waa interesting to discover from hid how a junior Senator learnt the legislative processes and begins to hold national attention. , Congressman Saund, the first Indian to be elected to the U S. }louse of Representatives, and his charming wife showed more con- fidence about the 1960 elections , than many a seasoned Senator, . The reception at our sErahassv I that evening was largely attended. I We had to stand for nearly 100 Iminutes to receive guests. But Mrs. Chagla told ma that an Re- public Day, the had to be on her feet for three full hours! Our re- I ceptiens are popular and our I hospitality generous witbfout being! i lavish. Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 ra, ot^ , ;0 ? Aarisa ????I Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 IMES OF INDIA ? FRII*Y, MAYMet9,52., q{' TV, Idra And k Chin By A?SOCA._ B/PEItAt for, setting 'the-AM.:that 'we 'neat for our Plan?and we are asking' for almost a; billion dollars a yeari have been tryincter seek sup- "Port for the Tibetan refugees. I had, useful talks with - Justice Douglas,' Senator Douglas and Congressman Judd ?in ,Washing- ton:, In New York, I nieta many others including a nurnbefot or- ganisations and voluntary agencies dedicated to silent ' service .of 'hu- 'manity. Already promises of medi- cines worth S600,000 have been received, so also for'food, blankets and other requirements.. In New York. I have had a round of luncheon engagements with the different Foundations. was with Dean Rusk and his col- leagues at the Rockefeller Centre. At the Carnegie Endowment for International Peace, I met not only old friends like William Holland of the Institute of Pacific Relations, but also many representatives of various Foundations like Mr. George Grant of the Ford Founda.: tion, Lyman Hoover and .Ernest Howell of the Asia Foundation, Mrs. Hulie d'Estournelles of the Woodrow Wilson Foundation. Mr. Lawrence Finkelstein of the Car- negie Endowment is such a kind friend that one can always rely upon him for co-operation in any good cause?a cause that fosters world peace. I lunched with Mr. Julius Pleischmann, President of the Farfield Foundation and had dinner with Dr. Robert Hutchins, the intrepid President of the Fund to. the Republic. The Foundations play such-a vital part in the Intel- lectual life of America that through them one reaches the midstream of American thought and creatiso efforts. GRAND JOB Darius !herald who has achieved the position of a senior editor in the Newsweck?o remarkable achievement for a foreigner and one so ,young ?in ,age?got together . at the Overseas Press .Club n some leading newsmen front, the New York Times. and 'other journals of opinioti in the city.' -it etc'ced- Ingly- interesting?this, ,'?game of give and take inr:interpretetion-?of World ?events, ' ? ?..S. ? .0 ? Mr Max . Asebli .1 who: run Oho. four million dollar journal. the Reporter, was induced to discuss his socialist youth in Italy when we settled down for a chat in his Guggenheim home. We talked of' Roselli and Matteotti, of Sorel and Jaures?and forgot the contempo- rary world! The contemporary world was very much present when I sat down (or breakfast tin two successive mornings with Mr. Hamilton Fish Armstrong, of Foreign,..Agotrs and "Mrs. Vera M. Dean of the Foreign Policy Association The F.P.A. has done a grand job in brineing to the attention of the American people through their endless clubs and-ever foliating groups the main facts of world issues. I had a valuable get together lunch with the permanent repre- sentatives to the United Nations from Indonesia, Burma, Japan. Philippines.- Ghana, Liberia, Ceylon and India. .The discussion mostly - centred round the question of inter- national stabilisation of commodity prices, and the impact of develop- ment on international trade. At the United Nations Head quarters I was happy to renew my acquaintance with Mr. Graham. While his legalistic approach to Kashmir depresses me, his genial. homespun personality always &t- racts me. Our brief chat on Kashmir repeated the usual gambits on the two sides?then we talked freshly about other and less in- volved problems. It was a joy to meet Prof. Arthur Lewis` at the U.N. who is working with Mr. Paul Hoffman. Lewis is back from Ghana. and has enriched his unique understanding of economic growth. Lewis was highly appreciative of the work done by Mr. B. K. Nehru. He said: "You Indians can charm money out of anyone." He there- fore asked ma to raise for his West Indies University a modest sum of Rs. 2 crores: Also met a number of other young Indians working at the United Nations. HELPFUL THEri'4 e day that,I Wssi in Bos- ton, I enjoyed shunting between the Harvard ...University the MLT,. meeting students an' teach-' era alike. I was happy to find the day rounded off?with a dinner given' by NUT: friends in the Harvard Faculty Club! At the Centre of Inter- national Studies..I ?met some old friends like Lloyd and Susanne Rudolphs, Mayer, Kessinger and made new contacts with persons like Bowie, Emerson and Merle Fainsod.,Mr. Bowie was the Chair- man of the Policy Planning Cons-' mittee of the State Department and now heads the Centie at Har- vard. Prof. Emerson is an authority on South East Asia as Fain' aod on the Soviet Union. t Al the M.I.T.' Centre of inter- national Studies, Prof. Max4Milli- kan gave ; his time-librially.4, -With him were, men like Papanell. who have worked in Pakistan 'and per- sons like Wilfred hialenbaum whose field has-been India. The discussion inevitably turned to India and China. That the pro- portion of total investment made by Government is 35 per cent. for India and 93 per cent. for China caused no surprise to me. I was only mildly interested In the fact that allocations to directly produc- tive sectors were 52 per cent. and 68 per cent, respectively or that the overhead sector in India ab- sorbs 48 per cent, as against 32 per cent, in China. What really disturbed me was the key factor underlying the contrasts: A. Were India investing at the same rate as China the gap between the rates of economic growth in the two countries would close by 45 per cent; B. Were each unit of- India's investment resulting in the same income flow as in the case of China, the gap would narrow by 55 per cent. That we can invest as heavily as China, because ne cherish our democratic Institutions is understandable: but, that our inefficiency engenders ? avoidable "lois -4,-55'Irer cent.'is What.-deP-' teases the.SAs Albert Mayer. pointed , out- l in .New:" YOrk democracy, can 'bc more effective In India. BACKWARD : ' The diseussinn:at'alie two . cen- tres?,of, learning -,ranged over ,wide ,areii, and T was hear Prof. Mallenbaum remark at the end, "After such a discussion one wonders who is under-developedl" I returned to Washington to address the Convention of Ameri- cans for Democratic Action where I spoke with Mrs. Eleanor Roose- velt and :the young African' leader Tom Mboya w:.o has made a deep Impression here. The A.D.A. strives to bring together the most prog- ressive elements In U.S. political life. In Washington I have been caught up in a round of TV and radio programmes. As I was told az the C.B.S. studio after I had , been 'through' their 'major -Face 'the Nation" programme, I have through TV and radio already con- tacted half the population of the United States. I said niter thirty years of political work I have not vet achieved it in my own country! The American pressmen have a reputation of being tough, but, I have found them to be extremely courteous ar.d engagingly friendly even in their questions. ' In the TV programme "Open ? Hearing" I had with me a Nige- rian spokesman and Dr. Figgaros, twice President of Costa Rica and one of the most respected men from Latin America. , He is an M.I.T. trained engineer who -has turned politician and has in his stride -mastered economics. Aniong the many problems we discussed about the under-developed world, one story of his stands .mit in my memory. When he was the Presi- dent of the Costa Rica Govern- ment. a major aluminium concern started drilling for bauxite in his country. Reserves of 100 million tons or more were located. After a year's tangled negotiations be dis- covered that in a ton of aluminium that would fetch 5500, his country prosiding bauxite would -get in wages, taxes and all just five dol- lars. As he said he would not allow them to take away the exhaustible raw material?bauxite from his country, leavinnahenther resource-'of "7, develtipment-'-hydel potentlal-:-tmeiploited.,7- The ; deal on aluminirer never...Cana* thrriugh. Ito is itt,courageous ,, man-with ' a distinctive insight, in world 'politics.- .. . . IRANQUILLITY:f: ---?- Governor:" and. Iladame....'lltunoz Marin - of' Puerto Rienaltarnelover ito see us He is erectile:the few , remarkable persons s,1",,, have ?met. -'.I am lookingi-s?forward,', to my visit to his exining country that he has madetodaygic bbo- ratory of social .ex_Nrimentation. He is a poctzpolitician,artorniiirt&- tion I. have always 'tonna. ins- We as it is rare. This big man with his aristocratic ancestry or is , truly a man of the people. ., He ,embarked on a big' development I programme and called it "Opera- :60n Bootstrap" and then felt that the necessary orientation was slip- ; ping. So he called his associates 1 together and pointing to Gandhi- sTs statue that always stands on his table asked for a new ears? 'Operation Tranquillity:- . The Amba.ssadar of Pakistan asked me to dinner and we spent nearly 150 minutes discussing the prob- lems and relations of our two countries. There is a change in the mood of the rulers of Pakistan; 'many people have noted it here and commented on it to me. I hope in the clang Iii border cla- shes. we do not miss its import The Israeli AmbassadOn, Abba Fban." is anion Brie 'older., ablest and most articulate o1. the,,,diplo. osats in . Wa.sbington. We roved over the problems of the Middle East Mr. .)ban is returning to enter active politics.-His insight into America's chansng mood is distinctivt. Apart ?from doing my little bit ',to Improve the atmosphere here -- 0dr:representative at the U.N. Mr. Jha, and our Consul-General, Mr. Gopala Menon, were uniformly helpful to me. Mr. :Simon has established valuable contacts with Wall Street and industrialists. I was.hapPy.nislearn.that as an, after, effect of our ponference ington. a, grouR:' of "iiimprtant spokesmen of business had ale: to consider the advimbility,,ofilicttinit up .a group to help investnicht., in, India, s s ;;' ? Lo ? "OreatlLr ? ramfarts ',have said,.anrJung about Inv visit to the International Mone- tary Fund. There I met not only old friends from India like Mr. Adarkat and L G. Patel but also friends from other countries like Dr. Than Tin ? from Burma At the India House I addressed a meeting convened lay Mr. Gopaia Merton. of Indian students. There are 600 of them in New York alone. Also snatched some hours to motor down to New lbven to address students at the Yale Uni- versity, I told them how the initial aidowirient for the Unirersity had come from Mr. Yale who as Gov- ernor of Madras had amassed his wealth in India. I said that I was happy to ace the rnagnifice-?.1 sprouting. of the seed supplied covered with the sweat of the people I tiled the fine bunch of students there. I thought they res- ponded to the more open heartedly than the India House audience! It has been a crowded seek, It has been so crowded that I was able to meet my host. Albert Mayer v.bit is advising us on the planned development a Dal' urban area, only on the fourth day of my nay. I lived in his house but could net ntaxt him! (To be continued) STAT S Declassified in Part - Sanitized Copy Approved for Release 50-Yr 2014/02/26 : CIA-RDP81-01043R003800210002-1 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 tIliftlES OF IDIDA W.FpNESDAY. TUNE 3,...1959 A TRAVEL DIARYI4 Meeting With Reuther In Depressed Detroit By ASOKA MEI1TA N May 15, I went to Detroit and the slack in the economy removed, from New York; it is the automobile centre of the United States, where by a trick of geo- graphy Canada is to the south and not to the north of the United States. The auto industry is hit by re- duced demand, competition from small cars from Europe?their share of the U.S. market has gone up from two to over seven per mt.?automation and dispersal of the industry. The result is that Detroit has nearly 2,00,000 un- employed. The slate of Michigan has not paid Its employees, in- cluding the Governor, their salaries for two weeks running! An offi- cial of the United Auto-Workers' Union. who had come to meet me at the airport told me how is Hudson plant employing 6,000 workers had shifted 500 nines away. Only 200 workers had managed to go with it. The rest ,' appeared to be the human scrap- ' ,2' heap. Thu workers, depending J on the, period of work put in, arc entitled to unemployment insur- ance for 26 weeks and for a fur- ther period of 13 weeks. After that. they live on relief. Some 20.000 workers constituted such a hard core of the distress in the city I went to see the Plymouth en- gine plant, one of most automatis- ed plants In the United States. It is the showpiece of Detroit. The King or Belgium had been there the previous day. I have read something on automation and as- sembly Imes, discussed them, but one has to see automation at work to get the full impact. It is 1 amazing to see these rows of ma- chines working without men as it were. It tires you more to see just machines. faultlessly working with a few blundering humans around ! INTERESTING HOURS I then spent three interesting hours with Walter Reuther. ['resident of the U.A.W. and one of America's outstanding personalities, lie had just come back from Berlin where he addressed a May Day rally of 6,00.00o persons. We talked about the depres? sion. He said that last year when big auto companies had a million cars in moth-balls, they terminated the con- tracts with the Union to provoke workers to strike. The auto workers arc unaccustomed to work without contract, without which they feel as if they have been shorn of clothes! But is special convention attended 'by 3.500 representatives from the plants decided to carry on. With the lapse of contracts, the check off of Union dues stopped. The companies had hoped to put the financial squeeze on' the Union. But so efficient is the. . oiganisation or the Union that through , personal contacts and collections 95 per cent. of the dues were collected. At last after three months fresh con- tracts were made but so unbending was the attitude of the auto barons that in ii number of plants the Union had to spend over 30 million in stag- lop strikes. Reuther Is an outstanding spokes- man of American liberalism and radi- calism and he is therefore hated 'by the upholders of the "status quo". In the. 1953 elections to Congress, in 2.000 daily newsrxrpers all over the country three l'ull nava of advertisementa dr- ii ottaci-ae Re at 4 a Y -re published Ile shoa! ale a kaastet where he was list- :el (with photograph) as 'the candi- date for es-cry office for khich the racnrocratic Peaty wits fighting! The ? . Republicans bad made him the main target and a .bogey man. The election results however showed that neady 56 to 37 per cent. of the voters in Detroit backed the Democrats, the highest percentage in any city in the ' United States. : Ile said the U.S. had reached the , stage where the working-class could 1 progress only with the advance of the general community. The cake having grown big, there need be no quarrel over its slicing. But it was necessary Ito insist on its continued growth. Tho U.S. economy was not running at fun . steam'. Its late of growth Was under 3 per cent, a sear. If all the four million unemployed are prosided lobs, in die next five scars the American economy could produce 5403 billion more of goots over and above its current annual output of nearly 5500 billion, a war. We discussed the political situation in the U.S., the international acme and its tensions and hopes, the labour movement in India, our third Plan and a host of other questions, includ- ing the urgent nxd to organise white- collar workers and the problems of leisure. Walter Reuther can be elo- quent and infectious even "tete-a-tete". That evening I spent with a group of auto-workers, men and women, white and Negro, employed and unemploy- ed. Someone said, "In this city we live in fears of losing jobs." As the rule of lay-ofi is last come, first go, there Is proportionately more unem- ployment among the Negroes than the Whites. Men over 45, once they get laid off or lose their jobs, find it very difliault to get fresh employment. Amenca is a land of the young. WITH MR. STEVENSON Next morning I left for Chicago. From the airport I was driven to thz sylvan retreat of Adlai E. Stevenson It is an abode of peace where he lives with his son and charming daughter-in-law. Stevenson's home is to many American progressives a new Mount Vernon. Ile has helped to change the climate of opinion in the United States. Ile was in a *relaxed mood and over lunch we chatted for more than two hours. First he in- sisted on my telling him "all about India" and then he talked freely about his own country and the wider world hc knows so well This great idealist is also a sturdy realist. Ite feels that if the Western "owers can he brought together, much greater help can flow to the under-developed world and Russia can be challenged to join and match its strength in constructive endeavour.. From Stevenson's place I drove to Chicago University to address a meri? mg of students. After the meeting I was the guest of "The Chao, Club." It is a faculty organisation has no membership, no premises, no constitution or organisation and little funds. Whenever an interesting visitor comes to the university Chaos turns to order and an interesting dinner- discussion ensues. I ant many old friends both American and Indians (I was happy to meet Mr. Krishna Kripalani and also Prof. Nilkanta Shastri there.) For some hours. ques- Asa,, had been to Hawaii to do soma as tar sa:ia-c,,,E tniasionanes and had done well for themselves. "There was a world La- moos heart-specialist, a learkipi.archt- lect and many others. ill OktPubli: s=ns and the Democrats.,a..ilr them st.me out and clashed. 4.% Next morning I went to the Stand- ard Research Institute to talk to 'a b ons and answers went back and group of experts on investment =- forth. I was happy to hear Prof tres and other ideas that arc being Milton Singer tell me at the end, "Mehta, you arc no socialist, you arc plain man thinking!" TV PROGRAMME Prof. Ilea Hoselitz took me later in the evening to participate in an exciting TV programme. It as a weekly programme called "At Random." It ' started at midnitht and went on till 3 a.rn. It is a new programme but has been so popular that I was assured at 3 a.m. that a million people were then watching ad There were six of us, brought together with- out rehearsal. The other five were: [slim Lorraine I lansberry, young , Negro author of a Broadway hit play ' "A Raising in the Sun." The play has been acclaimed the best of the year. Gregor., Boyington one of the air aces of World War It and author of a recent hest selling autobiography "Bea, Baa Black Sheep." lie had the Commonwealth Club?and I had climbed back to sanity and respec- to promise them that I would return, tability from the dark depths war ex- The San Franciscans were scandalised periences had cast him Into. Otto Preminger?one of Hotlywhood's most that I preferred to spend a day in Los Angeles in preference to one daring and successful producers and directors. Miss Soia Mentschlkotl. more day in their fabulous city. But Professor of LAw at the University of then thew hsathens have not heard of Hollywood! San Francisco with its bay and worked out. This great institution is the model and the ally of our Na- tional Council of Applied Economic Research. I had lunch at the centre of advanced study in behaviourial scion' tea, a new Ford Foundation outfit. It Is, as Prof. Max htillikan had told me in Boston parodying Veblen (au- thor of the "Theory or the Leisure Class), the 'leisure of the theory class." Fifty top intellectuals front the U.S. and abroad are brought here together in idyllic surroundings to spend a sear in' quiet work?to rein- vigorate the deepest springs of their creativity. I spent four interesting bouts with the cream or American egg-beads! I could not take advantage or a number of interesting invitations, for instance by the Bank of America. by Chicago. first woman to teach law at Harvard and Chicago. and Eugene Gilbert. President of Gilbert Youth Research. the world's largest and first organisation devoted to the determina- tion of teenage attitudes, made up the rest. The six of us discussed and argued about all questions that could hold our inter&At and spark our thoughts. Naturally this new pro- gramme of uninhibited discussion, re- vise) of the lost art of conversation, has caueht the imagination of people jaded with "popular ' programmes. On the 17th 1 reached San Fiats- cisco, the golden gateway to, Ame- rica. Our Consul-General met me at the airport, and among those present at dinner to meet me I was happy to find the atahamia of Mysore. Ile is here partly on holiday and partly to speak on Indian philosophy at lead- ing universities. His shy.' cultured, deeply religious personality has great- !) impressed all whom he has met. It is so characteristic of him to give rip his well earned vacation, to bat for India. The Maharaja's utter simpli- city came out when he asked me whe- ther in view of the extravagant ex- penditure of the Ameticans, the dol- lar was safe. 1 said it was safe but not stable! Early next morning I left for Sac- remento to meet Governor Edmund Brown who only six months hack de- feated Senator Knowland by a mil- lion votes. Ile is a robust, breezy, ex- trovert. We talked for over an hour, about local politics, the international scene. the Presidential possibilities (lie is himself very much of a dark horse). his Roman Catholicism. the revival of the Democratic Patty and his forthcoming visit to India. In the afternoon I was able to assert my bipartisanship by meeting the Republic Mayor of San Francisco who honoured me with the key of the city. UNUSUAL PERSON Later I met a most unusual Per- r cora a Loneshoremem Eric Holier. who has written some highly original books. Inchiding The True Reliever. lie told mc about how the hook strew in him and how he wrote it in long hand and sent it to Ilarp:r aros. and the manuscript C4s, accepud and published. Now The it't to York 77m,..t and The Reporter seek him rr out for articles. He told me of the life and the world view of the dock- ers. This unique intellectual is proud to work as it dockman. I could write a whole article on him. and I hope some day I will Ire was like fresh mountain air?refreshing, the dew of the dawn opening the petals of one's being. The same evening I dined with the President of the Asks Foundation and met come old friends, rite Dr. Har- old Fisher of the Hoover Founda- tion. and Dr. Robert North, and Dr. Richard Parks. Also made new stimu- ? lating contacts with person like Prof. Robert Stalapino. In the United Statist Professors play an unusually important role. I was hapny to note complete metamorphosis the Found- ation has undergone. That nicht I went to Berkeley, homerrr,;tc: ef the h o, in of University of California. one trrheeatcellie.andNebsit monteesttAnni; ?1."hali Windmilla took me to KPFA tor a radio interview. WindmiTler is part author or a study of Communism in India. tust published. The KPFA Radio is high-brow. It works on the basis linenere sponsor:him Those who tune in its tweseramme4 Pay S12 a Tear if they Eke it and Its support teem on grerwina. I was harpy to meet again Thomas Reesch who has been worktne on the history of the socialist mew-ruler,' in Ind's, I was sairnosed that in the University of California. quite a fear students are working on the ideas of Asoka Mehta! One cf the students gave me a forty-page article on my "philoso. Phv"! It was heart-warming to meet learn Div.rststr=ree Fisher and Joan Bon- durant. two devoted lavers of India. Dr. Boodurant told inc haw she al- ways used to assure frimods here, even when I was under a cloud in my mow and in r:rr country. that my political ideas did not denote somor- clarion of any kind! Al droner that night. as at lunch carrier. I met a cross section of Sae' Francisco's society. Nest to use war. a lady who I later discovered wag worth $25 rafflion?ber forefatherg woods is perhaps the most beautiful city in the United States. It is "a city of waves" as I told the Mayor. It has the bursting vitality of Cali- fornia so different from the mature as- surance of New York. 20th May: Los Angeles. the mush- room city of America that does not expand but explodes. Huge, sprawl- ing, ungainly. wallowing in wealth. the movie capital of the wessil. If San Francisco boasts of the first "fly- in hotel" (motels have become dated. Los Angeles has the first 52.5 million private atom-bomb proof residence with walls three feet thick. An Ameri- can and a Dutch student took me round in the evening to show me the sights of glittering Hollywood and exclusive Beverley Hills?the hub of triumphs and tears. Next morning I had to give a talk at the Occidental College, go to the City Hall and meet the young May- lankar. son of the late Speaker, who has been here for sit months cis a re- sult of a had car accident. In the four days that I spent nu the wevt coast, the only news about India that I saw was about Sonalini Devi. "who wears a ruby on her fore- head." (To Be Cnnetnesftil Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 (77.= Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/02/26: CIA-RDP81-01043R003800210002-1 REMARKABLE PROGRESS BY PUERTO RICO ? Continued from page 6 col. 8 transferred to Poking. and the S0413 and Commerce. He said eo-ope- Ambassador has just come from ratites had proved neither better there, and, you Can Imagine my in- nor worse than other enterprises. 'tcrest in them ? just after 1 'bet! The agricultural sector was shrink- Later I met HE. Daniel Cosio ing, even though 48 per cent. of Vince's. He talked, about Meal- the population was still engaged in ? co's propensity for discovering it. Because more people were mie- :nety?problema. Many a Latin Arne- rating to the United States and ' rican problem Is first discovered in faking to industrial work pet capita Mexico. The solutions found xy income of agriculture 021 fixing but not always be wise, but at least increasingly agriculture had to be theyare attempted. lie said that nude more attractive if , enough Mexico could talk a lot about what people were to be trained in it. experiments not to make. Sir VII- Later he took mc round to sell- lega* will be visiting our country help housing ,projects in rural areas. soon, I hope somebody will get Two hundred and forty such GM- from him all such invaluable ncga- munities have been built, re-housing sive hints! 25 per cent, of Puerto Rico's rural 23rd May?A number of ecia- population. The new villages are nomists, aocfologisu and adminis- planned by the Government, the !raters continued my education. Dr, requisite land being provided free. Rollelfo Orudas, of the Banco De The,Government supplies building Mexico; and Dr. Mancul Sanchnc mattarials?costing about 5300 to . Sart?, of the National University S350 to be paid back in 10 or 12 of Mexico; Mr. Ralph W. Rich- ycara--and the people build them- ardson, Director of the Mexican mayo. Tednical advice, if any'. Agricultural Programme of the comes from the Government. A Rockefeller Foundation, Mr. Robert community must build its cluster C. Ones, sociologist, of the. Spanish- of houses together. No one can English Association were among complete it before the other, be- those I met, cause then joint effort ceases. It ? As in Egypt, to in Mexico a sub- is is wonderful scheme which has stantial portion of the national in- real potentialitlea for our country. come cornea from (or goes to) corn- FF.DERAL 'CANES memo and services (411 per cent.). At 6-30 p.m. I went to the Guy' Agriculture's contribution is less ernment House for dinner with than 20 per cent, though 50 to 55 the Governor, LUIS Munoz Marin. per c,cot. of the labour force is He had with him his entire Cabi- engaged in it. The trading inter- net 'the Presidents of the Senate cut skim off the cream The U.S. and the 1-louse wcrc also there, firm of Anderson Cly ton la so obi- though the legislature was then quitous and important that Its re- sitting, for three and half hours' preventative was once greeted by discussion ranged on a wide array Prof. Sarto as the "Viceroy of of subjects. Because of the special Mexico." Commonwealth relations Puerto Agricultural production has toe- Rico has with the United States, daily risen in cotton and coffee the island pays no federal taxes? While the trend In corn is uneven and that means $130 million or 13 and sluggish, what has doubled per cent, of the national income. Its output in three years?front I told him that New Zealand with 0.75 million to 1.5 million. There the same population 21 Puerto is a dispute over whether the pre- Rico had set up in the past few revolutionary and post-revolutio- years 11,000 factories, mostly small nary elites were the same or had scale, employing 2,00,000 persons changed. Many of ? the former as against nearly 2,000 factories "men of property" have prospered employing 79,000 jsersons In under the new regime, but much Puerto Rico. He smiled and said of the rich cotton lands are being that they had to compete with the held by descendants of the fathers U.S. mainland giants. We discussed of the revolution. the remarkable record of the THE INITIAL PUSH Fomento in developing for a period of seven years industrial expansion Almost everyone seemed to he at the rate or 50 per cent, a year agreed on the initial push In econo- mic development having come ?and . of inducing industries to from industry, though now Indus- move into rural areas. he Governor asked me why try and agriculture arc interacting. Thc Industrial revolution it,t, India had never called all the f o- the world, other than started with "ubiquitous" Industries nations liao textiles and beer, thoac belonging to the II-club, to I had a quiet lunch with Mr. discuss the nuclear threat to man- Menem our Charge d'etflairs. lie kind. "India .can afford to rise is evidently liked and respected above national interest.do ih I_ human hero. It is unfortunate that we groups cannot o t, ere is no have not a full-fledged embassy 1?J" for 1114"'" here. male? City is the heart of tie talked about the recent re- Latin America. The Russians, f with nith the Indian revolution, lii Cuba. Ile compared it was told, have nearly 800 persons . lure?in various guises. Four of "though not JO spiritual " Figel Castro had an "army" of 600 that them have recently had to be ex- . . pelted. There is leen interest in uefcated Batista 3 nighty trained India: and we can reap rich re-, and fully equipped forces of 40,000 wards In political and cultural un- ecausethrl superiority. He prais- ed I ea people's support aye l derstanding if a better effort is him a mo made. ed Castro's men as being Innocent I realised once again how much and free from any sense of self- I had lost by coming during the importance. They had made his- tory but they had retained their summer holidays. Bet for the holidays I would have had the youth and innocence. I turned the talk to Spanish honour of inaugurating the Mexico- literature because I knew the India Association, Just being started Governor is not only an outstand- Mis Alma Read, a prominent ing politician and administrator s writer and journalist and a friend but a philosopher and poet. For of Mrs. Sarojini Naldu, gave me some 40 minutes around the table the Governor and his colleagues fascinating details about the family background of Mexico's new Pro- discussed literary problems with sident, Adolfo Lopez Matesos. the same zest as lie had displayed I saw sonic of the magnificent in the discussion of administrative and economic problems. churches with their ornate altars. 1 realised that to Puerto Rico too 'I he exotic, extravagant and ince- ? I had conic two days too latet- lug"lurals olp s,,ic ieg7eRi,l'ilera p'2g: over s cause tifel.cjisniaalesPt:rioblohaCdas Just tite?ttrst the other great ters made mc feel that the secret after a triumphant tour. of colours was unlocked only here. ? In the churches, full of 'devout COMMUNITY PROGRAMME people. I saw the riots of colours 26th May?Saw a short prize- in women's dresses and realised winning documentare produced by that the ancient sun-worshipping the Community Education Divi. ateaienns are verily the children sion. Then had a long discussion of the spectrum. Perhaps that is with Mr. Fred Wale, Director, ehy there Is no colour conscious- Community Education Division of nes% uh.rolutcly no racial discrimi- t.ie Department of Education. Mr, nation here. Wale is an Englishman by birth. Gave a long intenicw on idea- a person of deep sensitivity and logical efflorescence In India to humane vision. Ile is frightened at hxamen. "a journal of ideas.' the influence the American experts again through an interpreter, an are hating on our community de- able add sensitive young man from velopm i ent programmes. because, n Bombay, Mr, Shirali his view, thc programmes are ex- Some Mexican and Chilean cellent as extension services but friends took me In the evening to do little to promote the commu- sample Mexican food, wine and nity spirit. Two incidents that Mr. music, I could enjoy only the Wale related would make his approach clear. In a rural corn- ECONOMIC DIALLOPMLNT munity in Puerto Rico $550 had 24th May?I take off for San been collected to obtain a match'', Juan, Puerto Rico. The whole tog grant from the Government to . day will be spent travelling "cr. construct a tillage mad. The trea.! surer, a woman, had resigned and i to Rico, with 2.4 million people, enjoys some kind of Conniton- the community =cane was dis- wvalth relationship with thz United cussing the situation. Some people were worried about the safety of Slat' Ii has had a rcularka.""' the money. Someone suggested that programme oi' economic develop- mcni and social change in the past a field worker of the Community go tell )ears. "Foniento." rasholthiclis is word for development, is inscribed Spanish al:ndtrtsecti"thencersa-ritreames'iut et cr>,. here in this island bursting where the field worker came in with creatite caorts. He slid not want the community 25th May--The day has been so to look outside, to authorities above, but discover strength from :ull of discussions that it is moos- within Pie problem was satisfac. sible to note down eversthirtg that jd . SSSS said. ton so in another community, at a My first intestiew was with Mr. meeting arranged to work for the Hugh Barton. Director. Office of supply of pure d Economic Studies, Economic De- drinking water. a %element Adntinistration. Math the treasurer, woman steposal forward to be few preliminary remarks I made A nun spat and said. him feel that knew something of a woman was no good for such a the Puerto Rico's adventure in cue- . job. The field worker knew that ?..yelopment and gladly plunged into the waterworts would sink if he got into the controversy. But he , details. did. For over an hour the meeting ? Then we went to meet Thcorodo aisectssact women's place in life. Moseosos. Director of the Econo- mic Development Administration. and while no new consensus men- lie bemoaned the political pro-standing cd straightsvay. a deeper under- prevailed. The corn- nut that has increased wages and munity education people lute no eaten into investments. "The project responsibility. The wain'. wages of transport workers hate cal staffs conic in only when the increased so much, that we hate people are ready to re...setae them now no money to bur buses! Our community development offi- Wages of industrial workers have dais would get a new insight into increased by 85 per cent, in the past three sears and of Guy the problems if they had Mr, Fred cutploaces by 15 per cent The time, esannent Wales in their midst for some result is that a bus drit cr earns j had lunch utth Dr. Arthuro '$200 a month, while a unit-mita' Morales Carrion. Under Seem- trained teacher just SI25. Govern- tary of State of the Common- meat plans had to be sold because wealth of puerto Rico. We talked a Labour Government could riot about the impact Puerto Rteti is , bargain over wages effecurely. But making on LS. policies. pant- he admitted, notwithstanding his eularly in Latin America. The , well-known predilection for the pri- Governor's influence in this direc- vete sector, that nearly.10 per tion has been grow-mg. Then we 'a cent. of Puerto Rico's income came discussed the &Item:Kea in the from the public sector. ove.riess communities and States a I lunched with Mr. Luis Rivera pioneered by Britain and ISIntos, Secretary of Agriculture those pioneered by Spain. The English create schools - even in literature and art. the Spanish only outstanding exponents who defy cla.saification. It is fascinating to study the unfolding of the conti- nent of Latin America, connected in such diverse ways with Europe. Africa. Asia and America, grow- ing to -new positions of power and awareoess, a continent that will have 500 million people by the turn of this century. It is unfor- tunate that we take so little inter- eat in the Latin half of the New World. LITERARY FIGURES Chile usually sends out its out- standing literary figures as Its ambassadors abroad. We also need to do it. We should attach to our embassies capable young writers. That will give them opportunities to soak in other literatures and cul- ture) and interpret our literature and culture to others. I believe the cultural section of our Foreign Service can be greatly improved. In the afternoon, 1 went to the Planning Board, the Jam:runt 3011?011117, of the Governor's office. His co-ordinating office, which has no executive burdens but is only a "think-shop", has a staff of persons, drawn from many coun- tries?a miniature United Nations as the Chairman of the Board smilingly put it. 'I hose with w horn 1 bad dis- cussions included Sr. Candido ?liven's, chairman, Carlos Alvarado, member, and Everett Reimer, Dr. Scott Keyes, and Mohinder Bhatia, consultants Puerto Rico has reached a higher stage of development than Mexico, though its development is not wholly self-generating. Of the 21 per cent, of income invested, II to 12 per cent. comes from the mainland United States. But the country is struggling with the pro- blems of welfare economics, and the prospects of affluence are just round the corner. "Operation ? Bootstrap," how- ever, has been tin, though the bootstraps have mainly been; industries, particularly large and I capital intensive. There are both! high birth and death rates in In- dustry, but the loss productive in- dustries seem to be dying and the more productive growing. Hence; the success of the development programme. Puerto Rico of course spends nothing on defence. Mexico spends just 8 per ccnt, of its budget. The less defence takes away, the more is left for development. Puerto Rico has few natural resources except its people, and it has to Import raw materials, pro- ma them and export finished goods. The relationship of Puerto Rico to the United States, as Governor Marin had put dramatically to me, is that of an Imperial to colonial country except that in this case the purveyor of raw materials is also a Number I booming market for manufactured goods. Tho siphon- ing of surplus population to the U.S. also plays an important part in the comparatively quick develop- ment of the island Comnionwealth, 1,600 miles from New York. Puerto Rico has much to give our State governments. There is a remarkable vitality in the admini- stration. The Governor has gather- ed round him a team of able and articulate persons. There is verve and faith in the administration , which, if emulated, would impart a now dimension to our State goy- t ernments, 26th May?I leave in the morn- ing for Now York, to complete the last lap of my journey to the United States TINKS OF LNIMA FRIDAY, JUNE 5, 059 A TRAVEL' DIARY-5' - The Latin States By AS0E:A 21 ST MAY?Los Angeles to . Mexico City is a long flight -aait is like going from Srinagar to Trivandrum. The sky was spot- lessly dear, the wings of the Me- xico airliner shone like a reflector under a full moon; 17,000 feet be- low a sheen of silver covered the undulating earth. Mexico City, a federal district? keeps growing in population. As in Jakarta no two persons here, agree on its population. About a seventh of the population of Mexico is in the capital city and was told it provides half the mar- ket for the goods of the country. I was happy to find myself on Reforma Avenue, and in Hotel Refonna, both of which were com- memorating the new agrarian re- forms. Mexico delights in flaunt- ing its allegiance to the revolution. by. now a mystic word. The two best monuments in the city arc those commemorating the revolu- tion and the nationalisation of the petroleum industry. The city boasts of many modern buildings glimmering in the sun in steel and glass Skyscrapers (tallest 46 storied) and men scraping out an uneasy living make tip the disturb- ing contracts of the city, which is perched on a high altitude and en- joys fickle weather The day ? the 22nd ? began ' with a press conference. This is the first press conference I have held at which questions and answers were "carried on through an inter- preter. It received a good coverage ,and I saw my photographs the next day in many of the local newspapers ? unfortunately only on the inside pages. The Congress for Cultural Free dom had arranged for me to meet some literary people ? but cats one discuss literature thiough air interpreter? I seem to hate come here at the wtong time. A summer tacation of ten days is on. Parliament is in rcccss, and all Government ofTi? cials arc out of the city. I ant to have a holiday from politicians. VISIT TO MEXICO My main purpose in coming to Mexico Is to understand its develop. Fluent plans. Mexico has made re- markable progress in the past ten to hi-teen years. Production is grow- ing at the annual cafe or 7 to 8 , per cent and agricultural output 'leads the way, Between 1950 and 1955 the population increased 15 per cent. (Mexico has one of the highest grow rates in population) and the gross national product rose by 27 per cent., but the agricultural product increased by 43 per cent. discussed "the miracle of atecico" with -a number of econo- mists. 1 began with Manuel Al- varado. of the Financera Inter-Con- tinental S A.. who has just helped to float r synthetic rubber factory with an investment of 150 million pesos (or Rs. 6 crores)- His analys- is was interesting,. He felt that the land reforms had stirred up the people. The well-to-do who lost lands had to turn to other ave- nues. They came to the city and MEHTA from the ensuing ferment entre" preneurs emerged. The small hold. Inas created, which legally could neither be sold nor mortgaged, pro- duced proletariat, particularly front the younger branches of the fami- ly. Capital came from a liberal tax policy ? no taxes for ten years for a new enterprise ? inflationary financing, and the large inflow of funds from abroad. American tour- ists bring 5500 million a year. The 1.5 million Mexicans who work in the US. as &ocelot or tempo- rary agricultural workers remit nearly 5500 million a year (and they return with improved efficiency as well as higher expectationrand Often become artisans or skilled workmen), and the net foreign in- vestments are tariously estimated but he put them tat $400 million a year. So nearly 15 per cent. of Mexico's national income comes from abroad, I shall not load this travel report with the details I went into. SI4111LAR PROBLEJIS Next, thice experts in agriculture came to see mc. They were Mr. Edwin Deckles, l'rof. licbcrto M. Scin and Sr. Arnaldo Lemu, Pea- era! Agricultural Extension Service Director. They had a fascinating story to tell, particularly Signor Lerma. As we discussed problem after problem. the similarity be- tween India and Mexico became clearer, except that Mexico has taken certain vital decisions and the consequences arc now appa- rent. Talking to these experts was like looking into a crystal ball; one could foresee the many mistakes we are likely to commit and the in- evitability of hopes turning to frus- tration where men pursue contrary goals. I was informed that a pro. duct had shot up in that sector of agriculture which had escaped re- forms. "Land reforms". said Arnal- (In Lemma. "arc the sacred cows of Mexico" Then came Dr. Wifold L Lang' rod of the United Nations' Cons' mission for Latin America. Ile is a sociologist and his special (ACE- CO is not administration or law but human beings. He analysed for mc the social forces at work in the rural areas. the political tensions operating and the economic thrusts backward and forward. 1 must not embarrass his official position by quoting Iiim.in print. The reception arranged for me brought together many intere-ting persons. There were officials of the Bank of Mexico and of the State Department. There were journal- ists and writers (some of whom with characteristic Iberian genero- sity !misted on loading me with their Spanish works): a number of diplomats (at one time I had to carry on conversation.simaltancous- Iv with the US. and the Soviet re- presentatives, not a difficult feat because the two apparently had very little to say to each other): busi- ness men, and to top everything else. a Hollywood star floated in to impart glamour to the ,,how, The. 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