Evening star., 1949-02-09
Know-How Foreign Policy

To the Editor Of The Star:
There has been considerable debate in
the press as to the origin of Point in the
Presidents inaugural address the point
which related to technical assistance to un-
developed areas abroad.
Whatever the immediate genesis OF this
idea was. the writer cannot help mentioning
that he made this idea the principal point
in proposed American foreign policy pub
lished in the South Atlantic Quarterly in
October. 1913.
advanced the idea then, and have done
50 in subsequent published articles, that we
should sell our technical knowhow in en-
cheering medicine, administration. indus
trial management, soil conservation. crop
rotation, etc, to foreign co,ihtrieSss sug-
,gested then and now readvocate the sug-
eestion that this technical know-how should
be sold-not given gratis-and that it should
be done largely under private auspices. A
private Arm of MANAGEMENT engineers and
Htechnofogfsts. for exampk, ToulH assist
Bfazil III the building aid NpefationAof steel
mills! Private firms OF medical practitioners
could assist Egypt in the training Of doctors
and development Of hospitals.
The sale of our enormous technical
knowledge would be profitable to us. 1t also
would be what other peoples voluntarily
will accept. It does not. moreover. bear an
individually productive capacity of other
peoples. Increased individual productivity
is the only way they can get ahead. do some
thing for themselves, become able to buy
more goods from us ana others.
The actual development of undeveloped
areas should be carried on by private inter-
national corporations, in which foreigners
own 81 per cent of the stock where they
so desire. Some legal and political euaran-
tees would be requested in return for Amer
lean investments and American know-how.
Some matters, such as irrigation, might be
handled by public international corporations.
In some other cases mixed public private
corporations would be desirable, the pub
lie members supplying technical know
how, and the foreign and American members
supplying most of the capital. The private
members should be in charge of hiring
personnel making wage contracts and di-
recting finance.
Technical assistance to undeveloped areas
should be accompanied by the promotion Of
political independence and individual free
dom to be successful
QUINT1N NJ SANGER.
c. S. Retirement Fund Explained
To the Editor Of The Star:
On February letter was printed on
Federal Employees Benefits" by G. B., in
which he raised two questions. Perhaps you
will be interested in these answers:
There IS no surplus in the Civil Service
retirement system, any more than a bank
or an insurance company might be said
TO have a surplus in considering solely its
assets. which are largely in respect to the
liability to the depositors or policyholders.
As of June 30, 1947 the Civil Service
retirement fund had $2.5 billion OF assets.
OF this SIT billion represented the accun-
ulated contributions of employees and ex-
employees The remaining $500 million
would barely meet the liability involved for
annuitants already in receipt Of payments.
In other words. there is just about sufficient
in the fund to pay back the contributions.
along with interest, to employees who have
not yet retired and to provide all the future
annuity payments to those who have re-
tired. Thus there Is virtually nothing on
han@ to meet the Governments share Of
the cost for annuities to those who will re-
tire III the future. 1t could be argued in
reverse that the fund is not as large as 1t
ought to be, but this is not too valid q
point because there always is the word and
the faith of the United States Government
back Of the fund.
AS second question, there Is asked why
do not all contributors receive the same
annuity rate? Th1S Is certainty VaHo
question as between the different occupa-
tional groups, although it might be pointed
out that the 21a9o rate for Congressman
is based on their average lifetime salary
and not over the highest years. In many
instances it is quite likely that 11aHo of the
highest 5-year salary is more favorable
than 21aeo OF long-range average salary.
However, the differences in the Civil
Service factors for those earning under and
over $4,000 are perfectly justifiable because
of the general feature Of treating the lower
paid somewhat smore favorably. Also the
reductions for those retiring at an early |
age and for Joint and survivor annuities |
are perfectly equitable because OF the much |
larger xdditional benefits payable in such
cases. M.