Evening star., 1950-04-30
us. Is Cementing Pakistan Amity
Desire for Better
Understanding
Seems Mutual

convertible into dollars, Il Ia not
the kind Of dollar problem which
is plaguing the nations of Europe.
She Is in no distress which re-
quires emergency action. Its trade
balance with the United States is
favorable-that is, it sells more
here than it Is presently buying.
With all due regard to its finan-
cial health and its continuing
proof-contrary to predictions in
l947-that 1t is "viable" country,
able to stand on its own feet.
Pakistan Is among those under
privileged countries which Presi-
dent Truman had In mind when
he made his point four" pro-
posal last year.
The Moslem dominion has a
standard of living keyed to its
agricultural economy and the
basic needs of its people. It's
agricultural methods are centu-
ries-old and out of step with
present-day efficiency methods.
These can be modernized and its
standard Of living raised. and in
so doing Pakistan, like all under
developed areas. will become a
greater market for the worlds
goods.
The raising of her standard of
living. however, will require vast
sums Of investment capital from
abroad, which means primarily
the United States. Pakistan is
eager for private foreign capital
to invest in her future, but as in
India the process has been slow.
Perhaps the biggest deterrent to
private foreign investment in
Pakistan has been the fear that
the Kashmir dispute might erupt
into war with India, leaving for
eign investors unable to take out
their capital and unable to obtain
return on it.
L. S. Wants Peace
The fear. too. of government
controls and naturalization of
certain industries undoubtedly has
had an adverse effect on invest
ment of foreign private capital.
Pakistan undoubtedly will have
to apply, in the long run, for in
ternational loans, and must resort
eventually to the World Bank
and even the Export Import for
loans to get work started on its
vast hydroelectric and river-con-
troll program. It has made appli-
cation for membership in the In
ternational Monetary Fund.
All these items of Pakistan's
foreign and domestic affairs will
De in the background when Presi-
dent Truman and Prime Minister
Liaquat Ali Khan meet. What is
there that Mr.. Truman can tell
the prime minister the United
States would like to have?
There is little that we want from
Pakistan except peace and a con-
tribution to its preservation which
is in keeping with Pakistan's abili-
ties. We want only continued
honest effort on her part to avoid
fighting and disorder in the trou-
bled lands south of Soviet Central
Asia.
we are vitality interested to see
that Kashmir does not erupt and
thus provide Russia with condi-
tions of chaos which she finds so
suitable for promotion of her own
schemes.
There is thorough understanding
in Washington of the precarious
position in which Pakistan exists,
practically bordering one of the
worlds two great power centers,
yet under the necessity of avoid
ing every sign of provocation or
inimical intent toward either. It
is in our interest. too, that Pakis-
tan not arouse Russian antagon-
isms at this time, when our atten-
ton is concentrated on more
active fronts in the cold war.
There is no question at this time
of Pakistan being a candidate for
American armed aid.
That is why President Truman
would find it extremely embar-
RAISING even to broach the subject
OF Pakistan associating itself di-
rectly with the Vests cause in the
cold war.