Under-Developed Countries POLITICAL STRINGS’ TO AID CRITICISED

Press, Volume CIV, Issue 30924, 3 December 1965, Page 3

Under-Developed Countries POLITICAL STRINGS’ TO AID CRITICISED

Acir Zealand Press Association)

WELLINGTON, December 2.

The “political strings” attached to economic aid offers from developed nations to under-developed nations prompted critical comment from delegates to the Commonwealth Parliamentary Association conference this morning.

An Indian delegate, Shri N. G. Ranga, said “We consider economic aid to under-developed countries should be made in an honourable and entirely non-political manner.” Mr R. Ngala (Kenya) said his country would like to turn to many countries for aid —provided no political strings were attached.

A British Guiana delegate. Mr R. J. Jordan. said it was “idle” to talk of getting something free without having to pay for it in a more “subtle way under the table.”

Mr R. B. Chidzanja (Malawi) said: “Malawi is naturally keen to see the donor countries offering aid on softer terms. “Unless repayment becomes more available, Malawi will find it difficult to reach a stage of sustained growth because i most of her earnings will go [overseas to repay the donor [ countries.” | But Mr G, W. Clarke (New[foundland) told the conference he could understand how a recipient country felt when so many strings were attached. But, he said, donor countries would not want to give money for the purchase of for example, machinery, with no strings attached, in case machines were bought from a competitor country outside the Commonwealth. The conference began tbe debate this morning on economic growth in the Commonwealth. Three sessions have been devoted to the subject and the conference chairman, Mr W. B. Tennent, M.P., said 93 delegates wished to speak. India opened the debate and Shri Ranga said the development of under-developed countries was the immediate concern of developed countries. India Cautious But he said India was cauti-i ous about accepting financial i aid because of the vagaries! of politics. “There should be no idea of some countries being beggars and others the givers.” he said. A Western Australian delegate, Mr H. W. Crommelin outlined for delegates the ways his state was realising its great potential wealth.

In six years, exports of iron ore to Japan would reach the value of 70 million, Mr Crommelin predicted. “We are offering all sorts of inducements and concessions to get industries started.”

The eastern Nigerian Minister of Education (Dr. S. E. Imoke) said the Commonwealth needed a plan that put emphasis on bridging the gap between countries.

“As a member of a developing country, I feel this item (economic growth) has been put on the agenda mainly in our interests.

Gap To N.Z. “The gap between us and, say, New Zealand in economic development may never be bridged.” He spoke of Nigeria’s need for financial resources to invest in technical education, agriculture and industry. Dr. Imoke said most newlyindependent countries had an educational system to which they were committed, a system which often was outmoded regarding developments in technology. “Britain made a bad mistake in the period 1919 to 1939.” he said. General technical education was so badly neglected and allowed to drift that there had been a great shortage of skilled technicians in 1939.

Britain’s reconstruction process was still not complete, Dr. Imoke said.

He voiced full support for the points made earlier by Shri Ranga. Enche Shoib Bin Haji Ahmad (Selangor) said poverty and vice welcomed communism. The Commonwealth should work together to maintain employment. The

highly industrialised, highly skilled countries should concentrate on manufacturing and the less developed on what they had to offer.

Mr D. J. Curtin, an Australian Labour Party member of the Federal Australian Government, said Australia’s rich mineral resources should be nationalised. Instead of Australian minerals being sold to “wealthy overseas monopolies” they should instead be processed in Australia and the products sold to whoever wanted them. Shipping Line Mr Curtain said Australia should also have its own shipbuilding industry and overseas shipping line. It was preposterous that Australia did not have her own line. At present she was paying £l5O million to £2OO million a year in shipping “Australia is at the mercy of an avaricious overseas monopoly which has an unbreakable grip on our economy.” Mr Curtin said more Government control in industry was essential “as private monopoly profits are reaching a dangerous level.” Such profits should be returned to the people. He called on governments represented at the conference to give greater taxation concessions to the individual producer, the worker. Mr R. J. Jordan (British Guiana) said the Commonwealth had a need for an effective information clearing bouse.

But information exchanged between members should be at a practical level. “What I feel is a serious draw-back is that too much of the information that is made available is at the academic level,” Mr Jordan said. Enche Ahmad Bin Abdullah (Malaysia) said some wealthy nations seemed to be dumping synthetic rubber on the world market to depress the price of natural rubber. This was contrary to their efforts to help underdeveloped nations and “does not in any way contribute to uplifting the standard of living of the poorer members of the world.” More On Defence Enche Ahmad said Malaysia had to increase defence spending from 8 to 30 per cent of the budget after Indonesia’s confrontation. As Malaysia was about to embark on another five-year plan she would be looking to external sources to finance the plan. “We hope to get the stun in the form of a loan,” Enche Ahmad said. Mr Keble Munn, of Jamaica, after outlining Jamaica’s development, told the conference this country did not want strings attached to offers of technical aid. He said because of the "strings,” some projects did not get off the ground as quickly as they should.

Mr M. Saltsman. of Canada, i said the “elementary things! of life” were food and shelter—yet it appeared from conference discussion some countries were looking for the jam and not the bread. . Referring to the growing imbalance of trade between Britain and Canada. Mr Saltsman said he did not know how long Britain would be satisfied with the position. Trade Imbalance “Part of the imbalance of trade with Britain is not entirely Canada’s fault. We are most anxious in Canada to do business with Britain and stop the inevitable drift from Commonwealth trading. “We in Canada will do

whatever we can to intensify the scope of the Commonwealth relations,” said Mr Saltsman. Dr. A. W. Scott, the Barbadoes delegate, voiced the hope developed countries would take a greater interest in the West Indies by giving technical and financial help. He also spoke of the need for markets for distribution of products from the West Indies.

The New South Wales delegate, Mr J. N. Thom, said the first step developing countries should take was to ensure the maximum amount of finance was invested in education. The United Kingdom, the United States and Russia had demanded of its people the highest education and those countries had the greatest amount of economic stability and progress. Shri Shamlal Saraf (India) emphasised the need for education, technical know-how and “technical know-why.” Four Countries

It was important, he said, that the Commonwealth’s four developed countries—Canada, Britain, Australia and New Zealand—“open their coffers liberally” and come to the aid of developing countries. Shri Saraf also suggested, schemes could well be formulated to supply New Zealand and Australia with manpower from countries such as India where employment was a problem. Mr R. B. Chidzanga (Malawi) said most developed countries could not hope to free themselves from their present economic stagnation without financial and educational assistance from advanced countries.

“As regards finances, it is a well-known fact that Malawi has no funds to spare for development purposes Malawi is naturally keen to see the donor countries offering aid in softer terms. “As already stated this aid consists mainly on lines which have to be paid later with interest.

“Unless repayment terms become more available, Malawi will find it difficult to reach a stage of sustained growth because most of her earnings will go overseas to repay the donor countries,” Mr Chidzanga said. Mr G. W. Clarke (Newfoundland) said he could understand how a recipient country felt when so many strings were attached to aid. But at the same time the donor country would not want to give money for the purchase of, for example, machinery. without strings attached, to find the machines were bought from a competitor’s country outside the Commonwealth.

Mr R. Ngala (Kenya) said Kenya would like to turn to many countries for aid pro-

vided no political strings were attached.

The main burden of aid had been carried by Britain and the Kenya Government was very grateful. Kenya needed technical know-how and financial resources. Mr Ngala said. Speaking during the second working day of the conference, Mr T. Steele, a Labour member of the House of Commons, said Britain would continue to give assistance to developing nations. But, he said, first of all. Britain had to strengthen her own country and economy, Mr Steele said in spite of the balance of payments problems, however, Britain had increased assistance to developing nations and had created a new Ministry of Overseas Development. He said this indicated how the British people felt. Need Aid The Gambia delegate, Mr H. 0. Semega-Janneh, said it was the duty of C.P.A. people to see the under-developed countries. “Seeing is believing. If you don't see you never believe.

"In Gambia we really need aid as far as agriculture and health are concerned.” New Zealand, he said, was a “newly born baby,” 150 years old, yet delegates had seen how much this country was developed. Senator A. J. Landau, of Malaysia, said delegates all agreed upon the need for capital assistance and technical aid for underdeveloped countries from the Commonwealth’s “richer brethren.” Malaysia was grateful for! what had been received. “But we can do with more,” he said. The final speaker on the subject of the effective use of technical and financial resources was the Nigerian Min- 1 ister of Works. Mr Shehul Shagari. Speaking of technical assistance,' he said there was a tendency on the part of donor countries to pay more attention to trouble spots in the world than peaceful and stable countries. Nigeria received from the Commonwealth only 4s per head per annum—the smallest amount of aid for any Commonwealth country—said Mr Shagari. One feature of external aid was that most grants were tied to a particular project and could not be used for financing other endeavours. There was a need for reorientation of the approach to giving on the part of donor! countries.