Sydney Conference: Practical Effectiveness Of Achievements May Open New Phase Of American Thinking

Otago Daily Times, Issue 27384, 9 May 1950, Page 7

Sydney Conference: Practical Effectiveness Of Achievements May Open New Phase Of American Thinking

New Zealand Press Association Special Correspondent

Rec. 8 p.m. LONDON, May 8. Discussing the forthcoming Commonwealth Conference at Sydney, the Economist emphasises that its success will not depend upon the scrupulous exactness of its output of statistics,* but on the sense of momentum that it manages to create, and it suggests that by the practical effectiveness of its work it may open a new phase in American thinking.

Defence, the Economist contends, should be left out of the Sydney agenda for two reasons —First, because the strategy of the cold war will be thoroughly discussed when the three Foreign Ministers meet in London later this week. Since the successful defence of Asia cannot be considered without the active participation of the United States, the journal suggests that it is wiser to leave it to a conference at which the United States is represented. Secondly, the wholehearted co-operation of the Asian dominions will be difficult to secure if all discussions at Sydney are pitched in terms of defending Southeast Asia against Communism. “ Better results are likely if the emphasis is primarily economic,” the Economist observes. It also remarks that the conference should not devote its entire time to drawing up a “ comprehensive plan.” It thinks there can hardly be a complete picture of Asian needs, and that the problem is to choose from .a great variety, of desirable plans the jobs that can be done quickly and effectively. The field has to a certain extent been chartered by international agencies, and to pass over them would be to pass over some of the most acceptable instruments for common planning. The vital task, says the Economist, is tc make a start—to select a limited number of key projects, to establish

the machinery of co-operation and administration, to secure financial assistance, and to get to work with all speed. The most serious economic obstacle to Asian recovery, the journal continues, is the lack of food. The chief obstacle to’ any plans for increasing food is finance. The countries of South-east Asia have no surpluses to invest in major capital improvements, and the amount of assistance coming from other members of the Commonwealth is also likely to be limited. “ The conclusion is that if development on any rapid and ambitious scale is to be achieved the United States is the only source of new finance. This fact does not, unhappily, make it any more certain that the capital will be forthcoming.” For the time being, any American aid to Asia will represent a political decision to extend economic assistance in the hope of earning the dividends of political stability and economic security, rather than a quick financial return.

“The one hope is that the work accomplished at Sydney may. by its practical effectiveness, open a new phase in American thinking,” says the Economist. "Then genuine economic assistance might be forthcoming later on. Plans and figures will not ignite the American spark. That can be done only by an effective job of work.”