Cold War Strategy

Press, Volume XCVIII, Issue 28906, 28 May 1959, Page 12

Cold War Strategy

Foreign aid programmes have always met with a mixed reception from the American public. The President’s difficulties each year in persuading Congress to allocate reasonably adequate funds are evidence of the public’s attitude It is hard to convince the American taxpayer that economics can be as potent , a weapon as any against the Communist menace. If the vast sums, starting with the Marshall Plan, with which the United States Government has already buttressed the free world, are remembered, the American taxpayer’s dismay about continued demands on his pocket is more easily understood. However, events on both sides of the Iron Curtain have demonstrated the folly of undue reliance on military defences or political policies unsupported by economic measures. Realisation of strategic weaknesses has now

impelled the United States Administration to lay before Congress legislation creating a “ brains trust ” within the State Department to co-ordinate its economic and political campaign against world communism. Such co-ordination, to be fully effective, needs to be undertaken by an international agency: but, because the United States is the principal source of funds for the anti-Communist drive, improved organisation of American efforts should contribute significantly to the strength of the free world, eliminate admitted abuses of foreign aid. and reinforce the case for bigger appropriations The importance of economic co-ordination has long been recognised by the Soviet Union. In recent years, increased attention has been paid to the dovetailing of the European satellite economies through the activities of Comecon. The Communist political system itself provides powerful means for economic

integration. Conversely, in capitalist countries the Communists organise economic sabotage, including infiltration of trade unions Only comparatively recently has Russia adopted foreign aid as a method of political penetration in uncommitted countries. Aid is usually linked with specific political objectives. In the Middle East especially, the Russians are trying to spread their influence by offers of financial or technological assistance An example is the promised grant for the Aswan high dam. The Russians are also adroit in withholding promised help or trade when such tactics suit them. A classic instance occurred a few months ago, when Moscow contrived the fall of the Finnish Government by trade manipulation Jugoslav intransigence was punished by a sharp reduction of Russian credits; Poland was brought to heel by similar pressure. Suspicion of Russian motives is unlikely to deter underdeveloped countries from accepting aid if it is unprocurable else where. Economists estimate that the 400 million people of Western Europe. North America. Australia, and New Zealand have an average annual income of about £3OO a head The 1000 million people of the under-developed countries (excluding China) have £2O a head In the West, the population saves and invests productively about 10 per cent of its income, or approximately £3O a head a year—more than the entire income of the average citizen of an under-developed country Hunger, it is often said, is communism’s best friend Hunger will be checked only by economic growth Can the West already heavily committed to its own economic programmes afford to lose the political contest for allies in the East?