Evening star., 1950-12-03

ministration has decided that
combating communism with cash
requires one thing-aid funds must
benefit the low-income masses who
are the special targets of Red
propaganda.
This is an abrupt change from
the way American aid was handled
in China before it turned Com
munist. 1t may yet save the Phil
ippines as the ."showcase for
democracy in the Far East"
The State Department in its
white paper" on China last year
admitted complete failure of the
previous policy which respected
face" and allowed the Chinese
uncontrolled use of some 81 billion.
Only a fraction of that Ameri-
can money trickled through to the
low income farmers and laborers,
who simply stood aside and let
the Communists take over.
Bell Report Basic Plan
The China experience was a
bitter pill for Washington.
That is why the preliminary
agreement signed by President
Elpidio Quirino and Economic Co.
operation Administration Chief
William c. Foster. as personal
representative of President Tru-
man, may become a historic docu-
ment in the fight of Western
democracies to contain commu-
nism in Asia.
The agreement makes the Bell
report, a survey conducted by a
group of American experts during
the past summer, the basic plan
for future aid from America. The
concluding paragraphs of the re-
port of former Undersecretary OF
the Treasury Daniel w. Bell said
in part:
THE best way to strengthen the
confidence of the Philippine peo-
pie in democratic government is
to provide a strong and progress
sive economy in which people can
work and live with dignity and
security. This will not be achieved
by continuing the agriculture and
industry of the country along the
present narrow and inefficient
lineS.s
THE people of the Philippines
need an opportunity to expand
production in agriculture and in
dustry and to share fairly in the
increased output that this will
above all, economic develop
ment must not become a means
for increasing the existing in
equalities in income.
THE development should bring
with it higher real income and
new opportunities for a better
life for those who work on farms
in industry and in commerce. >
Before the agreement wa!
signed, some objections wert
heard in high Philippine quarter
that the new United States offel
of aid trod on Philippine sover.
eighty.
Parallel With China
These objections largely disap.
Fpeared when the opposition Ma
tionalista Party and its unsuccess-
ful candidate for President, Jose
P. Laurel, said they saw no reason
why the United States should not
supervise the spending of a pro-
posed $3.50 million loan.
There has been no attempt to
minimize the difficulties this
4l2-year-old 4 republic has en-
countered and still faces.
The hard-hitting Bell report
said the outlook for the Philippine
economy Cannot justify an atti-
tude of complacency."
It said the immediate financial
and economic problems are acute
The long-run possibilities appear
to be neglected"
Under these conditions, the re-
port continued. mo policy is SO
dangerous as to sit back and do
nothing"
The men who made the Bell
survey and independent observers
here agree that the Communist
directed Hukbalahap movement is
part of IAN organized effort to
disrupt the economy of the
country and to destroy confidence
in the government"
It is agreed that suppression of
disorder is essential. if planned
aggression" of the Hukbalahaps
is to be put down.
Beyond this military action,
however, is'the need to deal firmly
with poverty. Otherwise there is
a distinct possibility that discour-
aged, near-destitute masses of
Filipino farmers and laborers will
fall for communism.
There is a striking parallel be-
tween conditions that existed in
China and those prevailing in the
Philippines today.
The Chinese economy had been
severely dislocated by the long
war against Japan. The same is
true in the Philippines, but the
impact has been even. harder be-
cause the proportion of this coun-
try's resources destroyed or neg
lected is larger.
AS in China, imitation set in,
wages continued low. faith in the
currency evaporated and there
was a flight of capital from the
country.
Hit-and-Run Tactics
In the Philippines a feudal sys-
tenn of farming still Is largely
intact. Landlords have evaded
the provisions Of national legisla-
ton increasing the share of crops
received by tenant farmers. null