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AMERICAN AID

The" decisión” by the U.S. House of Representatives to cut by half the funds for which President Trumau asked tó rearm Western Europe will come as a heavy blow to the Atlantic Pact nations. The development is not, however, entirely unex- pected.

For months past the so- called

has recession

been making many Americans

THE CHINA MAIL, SATURDAY, AUGUST 20, 1049.·*.

+

A COMMUNIST CHINA AND

THE INDIAN DOMINION

Economic View From London

By JOHN KINGSLEY

The Communist victories in China and the communist threat in South East Asia are «causing' people in London to

those in other counteles in Arla, þand in making statements and By contrast, India and Paklatangenturen which show that it, la politically. The danger to their are both in "hɗbpy "position, going to net with real energy,

Mr. Mohm has announced that

I see that "a considerable num.

'more fox. This is not to be chance to fight with the Nation- takon

seriously, for I niist forces.

of India had

There's nothing like kosping in "Imports of

practico.....

look with close attention to vertiments lie in the distant, after 1051 India will import nober" of Japs have asked for

what is happening in India.

It is two years since India ant Pakistan became independent, and it is time to judge how their gov- ernment

are functioning. On the whole, the political life of both states has been developing very favourably. Their government re Britain's economic situation gained their grip on affairs ufter

striking paradox. the presents a

communal flare-up which How is it that a country whose followed the partition of the au uroduction is breaking fresh | continent.

cends, whase exports are half Law and order have been re- as big again in volume as pre- | stored. The currency in stable war, whose overseas trade in and inflation has been checked. general is about in the balance The armies of both states have and where there is virtually been re-organised. India has dealt noun.ployment cannot, mako

refugees. 11yderabad,

ends meet without American fully with very ilifficut

assistore?

the states.

The feeling is growing that

and Pakistan may both India prove to be the solid centres of order in an increasingly disturbed Asia. They are modern states and.

The mswer is the shortage of dollars or as it was put recently "The deep-seated maisdjustments between the dollar and the steri ling arens“, The outwarci signs, though they have been noted bet tore are worth summarising follows:

the Name time they are

leave

not Immediate, future.

It is their economic traubles. India, which are causing anxiety either to permit especially the economie troubles of the

people to starve, it would be bound to license grain Imports. But Mr. Nehru certainly menus that the need for food imports is to be greatly reduced.

!

*

By... WINDRUSH”

risen

to their friends. The question has whether them is not a strang case for extending Marshal aid from Europe to include India and Pakistan in order that the promising political development of there

countries may be rein farzed economically

economic weakness los India's

in the fact that it son protet tion is stagnant while its tion is growing very fast. During the war. when food Importa were hard to arrange, Ihdia paid for Its defective Food production in the terrible Bengal Tartine

Today can obtain Todd from abroad, but in order to buy it

genuinely Asiatic states. They stand for a way of life which is a synthesis of East and West. They India Britain

offer an example of how to pro- greva whion 4 an alternative to communism.

The dollar deficit of and the rest of the sterling area in the second quarter of this year was at on annual rate of £000,- 000,000, Exports of British goods to the U.S. in the second quarter

37 -year were

cent per below those of the first quarters though the sales to Canada were about maintained. US. purchases of British Colonial rubber, Un. encon and other produce have dropped by nearly one half in recent months,

These people in London who are thinking in this way do not delade themselves that all in

politically perfect in either India or Pakistan.

Congress is losing

some of its support in India and is criticisedk for corruption. A recent election in Calcutta showed sensational majority against

Congres

Mr. Nehru himself has admitted that Congress is weakening, and some of its enemies expert it to go the way of the Kuomintang fa, China. And if Congress is slipping in india, so in the Muslem league in Pakistan. The Communist party in countries is growing fo

must ure the precious foreign exchange which It ought to be using instead on capital equipment for its industrial pro grambre.

In the present year Indinis importing 4 million tons of grain AT n rost of about 2100 millout. About -n third of the grain is rice, and the price of rico is nearly six times what it was pre-war. The fond deflett is likely to grow steadily, for with its increasing population India needs to consuthe on extra half million tons of grain annually.

Economic Crisis

•

there Apparently

striking bakery workers want muro dough.

There is no reason why he should not succeed. It is true that, there is no

all-sufficient ments by Which

ich agriculturni out-end Up",

much

"Governinent Departments Mix- AVETA A contemporary

That, son, just ain't news.

put can be increased. But India's sesterday. agriculture is abnormally

inem. cient. Its productivity is lower, for example, than China's A programme which included a number of ensures all carried aut

together migli work wonders The India Government is building

a great fertiliser on a large importing Tertilisers on a large scale. It was the use of teriliser which revolutionised agricultura

Japan.

in

Other Netkures which the Indion Government is taking are to distribute Improved seed, can- solidate senttered holdings, and to light pests by the use of insecti- cides.

Better Off

"

"I've just been congratulating Colonel Pepper," sald a guest at T

"He's been cocktail party.. appointed governor at a prison.

#

"Really asked, Myrtle, "Now, for a job like that docs que tiendr Influence, or does one alati na a convict and rise from the ranka?”

A ja RuSE

Asilo Sales for used cars; all cars experts before sale."

depentfuble

vetoed by

•

Pakistan has been económically I rather like the poster alvert "better of than India, at least in scen around town these days. It the sense that it does not have the may not be powerful, but at least ed same problem of defective agricul; | it's polite: «Please drink So-and- ture. It prodice, an export siir

so's beor." plus of agricultural raw materials and, in

years, Akmal sür. plan of food grains, which will be much enlarged when new irrign tion schemes come into operation in the next few years. Pakistan'd shier need is to obtain capital for bathing up its industry,

wonder how far and for how long they can pursue their role of world benefactor and buttress against Communism, Taxation is at its highest in peacetime history; this not only restricts the salaried

To help rectify the position Bri- employee's spending but also tain is cutting her dollar

about makes corporations hesitate hases by 5 per cent ar

€100,000,000 per year. Other to lay out more capital. Both, Commonwealth ebuutries tave therefore, have on the sur-

already made or are proposing

1. nothing is, done" to córrer" face e good reason for reducer rate of cuts.

The causes of the deep-seater

this state of affairs, there will be inst government's expondi- aladjustments are not so clear,

a continuing economise" crisis in Indin, and this will pass över tur abrazid a well e Before the war the dollar deflejt

which was substantiat, but was In spite of the common dangers eventually into political esis, world in limited. But it is being ime,

Lettied partly by Britain's In- in which

they find themselves, Judia will remain despolnitely | krgued by some people in London visible earnings from overseas in 1 and Pakistan, instead of poor, and its poverty will breed that investment in India and vestments such as shiping, bank combining in self-defence, whe Communion.

Pakistan would give a high return In China it was the wretched economically and politically. in, inst dee and other financlat un obstinate quarrel over Kashmir

of the trinsactions: partly by the heavy though the chances of settlingnes

pessants which would strengthen their “penntale dollar earnings of the British this have happily improved in brought Who The lung. ·kin þre- | substratum to support the politi. Colonies and other countries In- the last week or two.

sent position. The Indian Govern- cal muperstructure. It would pre- side and outside the mater-

Common-

at

There is, however, a great deal of muddled thinking about the whole complicated matter. Judicious government expenditure during a disin- flationary period can ially aid recovery, and pro-wealth which were earned back by Britain by exports to there vide both jobs and contracts, countries; and partly by antes of not necessarily so crudely as newly-mined told to the U.S.A. Roosevelt, was forced to do Sources Shrink under the New Deal, Fur- ther, in spite of what many Americans Gay about the vastness of their home mar- ket, there are many expand- ed concerns nowadays which simply must get rid of their surplus products

overseas.

The main difficulty in this respect is the world scarcity of dollars, and that is one of the prime causes of the pre- sent minor depression.

These arguments may be admitted to be sound, but this does not always convince the US taxpayer, and the many power groups, that thousands of millions poured into other countries with a way life partially inimical to theirs is money well spent. Then there is the deep-seated fear of being drawn willy- nilly into Europe's war: the rooted isolationism which is still so strong in America, although currently under the surface.

|

The dollare no earned together with the enpital 'transfers were enough to pay for British Imports from North America and also La Anauce much of Euryse's defeit with North America. Britain, in other words, was able to keep the world multilateral trade Nowing at high level.

Sales of overseas investments, wartime destruction and

other causen haye dinainished most of

What is needed by finth India And Pakistan is capital from abroad, which will enable them to organise their resources in a modern way,

The supply of capital in the

In Comparison ment, now that it has dealt with'] vont the danger of this political

the wing political problems superstructure from being blown These political troubles have, which followed independence, is up by an explosion in the economie

however, to be compared with 1 turning itself to the food problem, nystem.

DO THEY

BUT HOW HARD

HARD DO WORK

that

IN WARSAW?

the workers

Wrote a reader after Alexander Clifford's or ticle "Warsaw, the amaz- the Bourcoя of Invisible dollar ing city," in which he the sale of investments losses aro varnings. In some cases as with reported: "Either Western., his medical attention free, his permanpat.

hit by the

ts.

A

reply:

make their week's purchase, so vantages their real writes are ahead. Other food is plentiful, ly boots and shoes, are stiff-ex-

can get in still low. Clothes, and especial and the prices are reasonable by pensive, and nearly everyone in Western European standards. Warsaw is still trying to furnish

The building worker gels all វា Honte.

There is this also to be said Foreign technicians calm that it children ore educated free, his about the rebuilding of Warsaw, is not nearly so good in quality ns it looks. it is not being bulli to lart. The work is being skimped and often Inferior ma- terials are used.

He has a week1⁄44-paid · aħnual holiday for the Arst two years (which the"uniéris' 'kay to not enough), a fortnight for the next eight years, and month after | that.

If he goes to one of the special holiday scheme resorts (half a million workers did go this year) he has his travel free and he pays 28.

for board and lotiging.

Children's Comps

Earnings from the Europe has not been try- taxes are tiny. He nearly always sales of Colonial produce have re-ing to reconstruct or this gets a good canteen lunch for d. sudden recession in Ud. cently been severely

trade is a miracle." Before-lea-or less, and he is entitled to re- and prices.

ductions in travelling and in And while other ving Warsaw for Stras-prices for the efnema and other prices are anything from two to burg Clifford' sent "this amusements. three and more times prewar, gold remains fixed at its 1039 price.

The anomaly of

the

ituation that it is set to a background of One out of every 12 inhabi- persistent improvement in the lutants of Warsaw is engaged in Taking 1048 or 100 the total in- trade. ternal situation In Beltain some branch of the building ostrial production reached This is the season when they fresh record of 133 in May hr concentrate on the outsides of nearly 30 per cent above the 1988 the houses (they leave the in- level.

In the first 12onths of sides for the winter. when the this fiscal

4 per cent greater than in the impossible).

year, production was climate makes work out of doors same period of 1948. The outpul per head is higher than pre-war All too often it is not ap- then it was a year ago,

and about. 42 percent higher preciated that the U.S. is not In each of the first: al months ብ completely homogeneous of

of this

year the wolome-of exports unity, speaking with

than in the corres greater voice. The Communists, for average for the half year was 151 ponding months of 1948 and the their own reasons, portray per cent or the 1938 volume com- her as entirely in the grip of parod with only 180 in the first Wall Street and other "im whole of 1988;

half of lost

of last year and 130 for the perialist militarists." This During the first five months of is not even a half truth, but the year there was an increase of of course it does have some 125,000 in the number of peop justification.

htWork In Brithin. Down inid-June: unemployment had Overtime is paid one and Speaker Rayburn was very fallen steadily to the Very low half times the normal wage for frank in his defence of the figure of 264,000 or little more then frst two hours and double arms bill. He said, "I am not than 14 per cent of the work overtime is not officially encour- after that. But the principle of speaking for Europe or Eng-ng population. land. I am speaking for the United States of America. If there should be another war, I want a battlefront some where else in this world be- side within the borders of the United States."

+

one

"

*

Every effort is being made to.

far

Speed Needed The Polish answer to all this after the initial denial-would prcbubly be that Poland is short of high-grade building material unt must build with what she can get hold of, and that in any cake at the moment speed is the rein consideration:

gaid the angler, 21 tell you i was that long. I never saw much a Bah."

Old friend: "I believe you”.

*

1

・すり

I REG they're still spaning that advert offpring "eleak

(faris, 25 stationery and oscillating."

Anyone who wantslite, know what oscillating in for sro) Bad go along and enquire for themselves.

“Sot of second hand tyres, sixo 000-16, in fris flixxxxxxx!!!xyz - condition. Any offers?"

No.

Some dumes are dumb And some are dumber,

I hope that I meet numb

This sumber.

*

The small boy who had been asked to do an exspy on the origin of mankind, wrote:

ma

daked mummy where grand ““ Came from, and mummy wald the Stork brought her

And wirero

did you come from? asked PAN mumny And

∙she said the stork N brought her or well. Then

Lasked 11 where fame from, and she sal

"stork brought you to do I have

hly cssay by 19 explaining that there have been no ndlural birth in our family for three generations."

"Is debt-collecting a profod- sion?" ask n' render.

14's really more of a pursuit."

"Murphy told the police ho. his wallet in his trousers at the foot of the bed. When he awoke, he said, they had been distributed and the money with one.".

What is, this Murphy man or centipede?

か

One of our reporters, alt on a

r

t

to

But when all the pinpricking was fly job the other morning, pproached by an elderly, is done, the fact remains that well-dressed gent who said, "Ex honses are going up fast thecuse me, could you tell me what workers are working hard, and the time In7"

About

Very

A

DAY

ARRIVING SOON!

And in every street you can His wife pays the same if she see the workmen swarming over is a worker, otherwise 4s day. ie authorities are organising the the scaffolding, unloading trucks. He is not encouraged to thke hla whole thing, with great efficiency math six o'clock,” replied our cleaning bricks from the ruins, children-holidays are thought Warsaw is being rebuilt as no

“Morning or evening!" boksued s and taking part in the vast job more rostful without them and other elty is being rebuilt,

the dignified gent. of reconstruction circles like to call the "miracle

which official they are sent to

to specintamps. wond all of Warsaw."

And beyond

th the build- ing worker can earn titles and

national hero. And on paper, at present the Polish builder as a prives and additional money by producing more Than he is ex- least, he is being very carefully pected to. The system is coiled looked after.

"workers' competitions."

as possible everything is on a piecework basis aml coch too much, but which is regarded mon of team has 'ited mini- as necessary in the present emer- mur target. Winn they exceedi

it

they are

are paid considerably more. A

This careful modelling of the worker's life is part of Poland's nswer to the problem of how to handle the Workers when they have won their struggle for social tapremacy as they theoretically have here.

He works

(which his trade union considers

@ 46-hour week'

lagency).

agod.

worker receives an ‘adiual money

-ansver

a forave Hoito go on work

are

For his toll the building they could stand up to a wage which is small-usually be Russian onslaught for a tween two and three pounds...s,

even after victory, the worth-while period..

week for unskilled

labour and ng One method is to persuade It must also be recognised bricklaying. But on top of that rather more for experienced

them what world's not only moble that many statesmen and he gets a whole series of other and digted but even exciting military leaders hope this advantages.

undertoyothe. The other is to

them that they convince Few people dare to say so extreme development will Family Allowance

extremely beme seguremely thoroughly outright, but it is obvious never take place, and that

Ho automaticnity gets"a family

looked after. that Western Europe, and the Western nations are allowance with a rising state of And it is perhaps the thorough- Britain in particular, are sufficiently strong, a third payments for each muccessive nets of the looking after that the viewed by top strategists in world war may be entirely children, for example, receives They grumble at the over-orga

child. A morried men with four Follsh workersdislike most. Washington as expendable averted

£6, 100, a month on top of his Isition of their leisure, the regi military bases, likely to bo The Rubile, in the form of wage

`mented ́ ́enthusiasm," "the sport- rendered untenable in time the House of Representatives, right to one of the new workbre

If he has no home, he has the faneous" processions they have to through radioactivity or pol has apparently agreed with dwellings, which will cou. Ucal featuring at the holiday march is, and the inocsiant. poli- sonous vapours. This at- the thesis, but has been ob bround 12s. 6d. 2. monuit, includ-entres titude is not adopted cold liged by the many influences in heating in the winter. There Buttey work for

'uro, of course, not yet nearly bloodedly, but regretfully brought to bear on it to com- enough of these workers homes

them the enthusiasm is no doubt and with what appears now promise. That aid has been Warsaw was 85 percent des renging The propaganda has They will work hardes to be a true appi

of slashed is understandable, at troyed. But they are being bull

Stori:"People" Foland", than for global strateTTÄ

this this time. But many of us. When food is short the w workersopijalist Templored.

sforing the| geta eilijar, special fations at cul 245

be borne out by

ther

bay

of being branded

ment is But nimicatsuit. Cament | "Thiti.To

For des

the

some

of

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