AID FOR BACKWARD COUNTRIES VAST U.S. SCHEME PROPOSED

Press, Volume LXXXVII, Issue 26393, 11 April 1951, Page 6

AID FOR BACKWARD COUNTRIES VAST U.S. SCHEME PROPOSED

(By a Staff Correspondent to New York of the “Sydney Motolnp fierafd*! " , (Jteprinted by Amnyament.) ' ?

After a poor start, America's plan for; raising the living standards of the world's backw*fd countries shows promise of expanding into an enormpus project. It .will aim to improve the economic and physical health of millions of people. , Government planners originally thought that the programme would take many years to carry out. But they are now pushing, ahead in the belief that great things can be done in the nkxt fivl) years. first To-day, expenditures of several thousand million dollars over the next few years are envisaged. , Some Congressional opposition to allocations of these large sums, particularly during the present world crisis, fs anticipated, but the Government is proceeding on the principle that the United States cannot feel secure as long as hunger, poverty, illiteracy, and disease continue to plague the 46 per rent, of the, world’s people who live in under-ddveioped areas. Considerable impetus to the Ctovett)ment’A programme, known as President Truman's Point Four plan, was given recently by the recommendations of the international Development Advisory Board, consisting of a '' fWiiiMts; ReeuatoMidatfMut'' ’* The recommendations of the board, which was appointed by the Government last year, were dramatic. They include proposals to create a new, properly empowered agency to direct a stream of investment into the building up of backward afeas. There were concrete suggestions as to how the idea could be translated into working realities, how epidemics of diseases could be wiped out, how more workmen could be put into jobs making roads, digging coal, and building homes, how people could be educated in better methods of agriculture, sanitation, and public health, and taught how to grow better food, and how to lead healthier lives as a community and happier lives as individuals. On the basis of the Rockefeller board’s proposals, the Government is giving serious consideration to the fol’owing points: First, consolidation of the existin’ foreign aid activities under a United States Overseas Economic Administration, having regional authorities empowered to carry out health, public work*, and food production programmes. with an Initial appropriation of 1'90.000.000 dollars; Second. 8n immediate increase in nrivate investments abroad by about dollar* yearlv. chiefly for processing urgently needed raw mater’als; • Third, the creation of an Internatcnal Development Authority to flnante essential public works construction in tmder-develope* areas as a basi* tor economic improvement. America’* si>brertoti<m to the agency’s authorised a onntxxi.ooo-dollar capital wmttd he 2f10,w 000 dollars; Fourth. rn Br-an'’emp->t to use fundi •'riming Wnoo.oflo dollir? from th< Ex’-ort and Tmt-nrl Pen’- fo- under, vrit’ne new foreivn riabt obli*atfoni purchased by Unit’d Stme s investors; Fifth, the creation of an Inter-

national Finance Corporation to operate ar ah oflUiate of the International Bank for ReeonstftKtton, to issue IMyoting stock to member countries, tnd to make loans in ledai and foreign currencies to private enterprises; . to tfider-develobad Areas at the 1»4» level of about ofiDO,OTO,OOO dollars, in Ofder to keep their economies going. Plan May Help Forestall SMmp Rockefeller, discussing the plan this week, admitted it might eventually be a factor in forestalling an economic slump intihe United States as well as raising world standards of living. ! NS expressed the belief that at some point in the present accelerated preductton of war materials, pdrnops in two or three years, there would be a slow-down in demand at home. “By then,” he added, “we will have a tremendous capacity tor production. But if we ate prepared for that period we can move right into a position to flu industrial orders for needy nations." ? The under-developed areas comprise all os* part of South-east and South Asia, the Near East, Africa, ,Latin America, and Oceania. The average annual income in these areas is 80 dollars a person, compared The ‘averagJ 20OT Calories daily « person, compared with 3900 in the United States. rends 44 per cent of its exports to President Truman recently emphasised what could be done in SMte Of these countries. In the presence Of several important visitors, he turned to the big globe in bis library, put the point of a paper knife on a part of the Middle East. There, he Sttid/was one •wan mite which contained more ott than the whole State of Texas-* America’s bis pest oil-producing StateThere, he felt. Was one of the p aces where the full exercise of the Point Four Pro'Tr’mme could make one of its greatest contributions to the attainment of world pence. Nearby were peonies who needed the fruits of modern industrial and agricultural development, which the united States could help to supp’y to them. Mr Truman di’closed that he had sent experts to this area, also to a tableland in Ethiopia where they saw fip.ooo square mil** of land on which the greatest cattle industry in the world cou'd be '’riablished. He spoke. w -h accurate detai's, of waterfWir* exceeding these of the hug* Nia ß pr a yells j n height and potential development. To materialise all this. mW Mr Trtimtm. was for better Nnd simpler than to shoot away all the production! of mankind. In Mr Tbuinan’s opinion, a peaceful woMd so organised could support twice its prerent population with good standards of living.