Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-04-06
GREAT DECISIONS 1853
Economic Policy and Survival

running less than $500 million a
year.
n Since our capital and tech
fs nical assistance can only be
marginal, at least, to the self
help measures of the developing
country, efforts must be concen-
trated on those undertakings to
which private investment is least
likely to be attracted. Moreover.
although it is generally recon-
mended that we avoid political
strings on our aid, this does not
rule out the right to insist that
the recipient countries carry out
essential reforms.
The consensus OF recent
Os studies is that the bilateral
rather than the multilateral or
u. N. channel for assistance is the
one most consonant with the Sc
curity thesis underlying our aid.
Certainly, If we rightly read the
handwriting on the congressional
wall, it is unrealistic to expect
that that the United States will.
in the near future, participate in
the Special United Nations Fund
for Economic Development or
other large International finan-
cling ventures. This would not
prevent our agreeing to admins
ter aid through multilateral
agencies along the lines Of the
Colombo Plan pattern.
Above all, it is desirable that
our assistance efforts recapture
the spirit of Point Four and the
high morale and sense Of dedica-
ton which it inspired both at
home and abroad. Through the
intrinsic nature Of our values and
institutions we have a potentially
decisive advantage over the Com
munistS.
Reds Are Progressing
In building q more effectively
functioning international eco
nomic system we are faced with
the formidable problem Of growth
in Russia and China at rates
apparently more rapid than those
in the free world. Although there
is good reason to believe that this
growth may soon taper on, Rus
sia's impressive industrial advance
and its outpouring Of trained and
scientific manpower cannot be
minimized, especially in the light
of its apparent aim and capacity
to penetrate underdeveloped areas.
The answer to RusSia's chal-
lenge can only be found in bolster
ing our economy and that Of our
allies by sustaining q high level Of
multilateral trade and free world
cooperation rather than by rely
ing on commercial embargoes.
New opportunities for economic
policy to support our political aims
in the Communist area are offered
by the STRINGS Of independence
in the satellites Of Eastern Europe.
Modest economic assistance to
countries such as Poland. II han
died with care and skill, can
become an important factor in
reducing their dependence on
Moscow.
What kind Of foreign economic
policy should the United States
have? ~
The answer in principle is clear.
although it may not be easy to
implement in practice. It must be
q policy that is part and parcel
Of our national strategy and that
serves our overall interests and
detectives. It must be q policy that
consistently and purposefully looks
even in daily application =
toward free and expanding
world economy and does not give
way to vested interests. crash
programs and negative solutions.
Whether we be formulating our
attitude toward Europe's common
market. extending technical as
sistance to Southeast Asia, dispos-
mig Of surplus wheat, Of fixing the
height of the tariff on Japanese
textiles, our decisions should pro-
mote a broad framework Of multi
lateral cooperation. This implies
an emphatic recognition on our
part that we can only continue
to grow and prosper and to main
tain our relative strength with
respect to the USSR II the
remainder Of the free world does
so also.
Such q positive policy is possible
Of achievement only II It Is sup
ported by broad public UNDER
standing, and If we are sensible
enough about our long-run well
fare to make the necessary short.
run adjustments and to pay the
necessary bills.