SPECIAL STUDIES PROJECT

50 Rockefeller Plaza
New York 20, New York

May 23, 1960

MEMORANDUM FOR THE OVERALL PANEL
Special Studies Project

Subject: III-Report, Japanese Translation

Mr. Hisanori Munakata, President of the Kokusai Koeki Company, Ltd., Tokyo, and Director of the United Nations Association of Japan personally translated the international economic report into Japanese. He had 800 copies printed and presented them to his acquaintances. The principal organizations which were covered in his distribution were:

Officers and former officers of the Bank of Japan

Officers of the Japan Bankers Association

Members of the Japan Management Association

Members of the Federation of Economic Organizations

Officers of the United Nations Association of Japan

Officers of the Japan ECAFE Association

Professors of Economic Branches in Public and Private Universities

Principal libraries

Financial department of newspaper companies

Governmental agencies

Economic research institutes

Radio broadcasting stations

Mr. Munakata very kindly sent copies of the report to members of the Overall Panel, Panel III, and the staff of Special Studies. Your copy is enclosed. Mr. Munakata added explanations and comments of his own at the beginning and end of the original report. A translation of these remarks is attached.

If you wish to write Mr. Munakata, his address is:

Kokusai Koeki Company, Ltd.
Mitsui 3rd Building
2-chome, Muromachi, Chuo-ku
Tokyo, Japan

Laurance S. Rockefeller

Laurence B. Rockett

Tokyo, Japan
3-chome, Mutomachi, Chuo-ku
Mitaum 3rd Building
Kokusai Kogyo Company, Ltd.

of these remarks is attached,
the own at the beginning and end of the original report. A translation
copy is enclosed. Mr. Munakata added explanations and comments of
of the Overall Panel, Panel III, and the staff of Special Studies. Your
Mr. Munakata very kindly sent copies of the report to members

radio broadcasting stations
Economic research institutes
Governmental agencies
Financial department of newspaper companies
Principal libraries
Universities
Professors of Economic Branches in Public and Private
Officers of the Japan ROYAL Association
Officers of the United Nations Association of Japan
Members of the Federation of Economic Organizations
Members of the Japan Management Association
Officers of the Japan Bankers Association
Officers and former officers of the Bank of Japan

in its distribution were:

to his precedances. The principal organizations which were covered
report into Japan. He had 300 copies printed and presented them
Association of Japan personally translated the international economic
Company, Ltd., Tokyo, and Director of the United Nations
Mr. Iseanori Munakata, President of the Kokusai Kogyo

Special Studies Project

MEMORANDUM FOR THE OVERVIEW PANEL

May 23, 1960

New York 20, New York
20 Rockefeller Plaza
SECURITY STUDIES PROJECT

English Translation*
of
<u>INTRODUCTION</u>
by
Hisanori Munakata

<u>Foreign Economic Policy for the Twentieth Century</u>

Special Studies Project Report III
Japanese Translation, September 1, 1959

This Report is the work of Panel III of the Rockefeller
Brothers Fund. Panel III is one of seven panels assigned by
the Special Studies Project of the Fund. The chairman of
Panel III is Professor Milton Katz, who is said to have been
one of the originators of the Marshall Plan and was chief of
the Plan in Europe. Mr. Nelson Rockefeller was chairman of
the Overall Panel until last year, when he resigned to stand
as a candidate in the election for the Governor of the State of
New York. Although more than a year has since passed, much
value is still to be found in the Report. <u>The New York Times</u>,
in a review of the Report in June 1958, commented on it as a
"recommendation which would have been regarded as highly
revolutionary up to a few years ago." It is my belief that its
progressive features and its lofty ideals remain unaffected
even today and will remain so hereafter.

In order to assist the readers in their understanding
of this Report, I have added my own comments and opinions,
though brief, at the end of the Report.

*English translation done by Mr. Munakata

English Translation*
of
COMMENTS
by

Hisanori Munakata

Pages 139-159

1. Preface

In what stage of development of the human race do we stand now? How are we to function to maintain both the spiritual and material inheritance of our ancestors, and to achieve economic and social growth for the following generations? We are able to acquire the power of active and positive living only with an acute awareness and deep apprehension of the problems.

A world-wide united economic community which needs to be established in the latter half of the current twentieth century, should be such as will be the most suited for realizing the economic growth which is the essential condition for the happiness of all peoples of the world. True it may be that the ones most concerned about the welfare of the peoples of such states are those peoples themselves, and it may only be natural that those peoples establish their own states. If, however, each national state were to operate quite separately and independently, it would not be advantageous either to itself or to other peoples. For this reason, the formation of some kind of a united economic community among the nations is an inevitable result of the world's economic operation. If any advanced country were to detach itself from the rest of the world in order to secure economic advantages for itself, its economic development will sooner or later be up against a wall. A struggle of two advanced nations for the supremacy of one or the other, also, will offer nothing to the remaining world except annoyance. Red China is concentrating her whole national power to achieve economic

*We are generally satisfied that this translation is accurate in setting forth the main ideas. The translation has been reviewed by Mr. Munakata (May, 1960).

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development. But if economic cooperation between Japan and China could be materialized, it undoubtedly would be of a great advantage to the people of both nations.

It is reported in the "Foreword by the Overall Panel" as follows: "We live in a period which to future generations will undoubtedly appear as one of history's great dividing lines." Also, it is mentioned in "A Word by Panel III" as follows: "This report seeks to outline a structure for a free world which gives effect to the interdependence of nations and which makes possible the achievement of the aspirations of its peoples." The report, also, "...strongly urges a greater American participation in world economic and social progress. We look forward to a world united more profoundly than the contemporary world by a community of shared aspirations." The contents of the above quotations, to my thinking, are the starting point of this report.

This is a report mainly to appeal to the people in America, and it covers the following problems:

1) The present stage of development of world economy.

2) The American economy in relation to 1).

3) The necessity of the cooperation of America in the development of world economy.

4) The fact that 3) is also necessary for the economic development of America herself and her people's welfare.

5) The fact that whether America will be able to contribute to the progress of world economy and social structure, and to what extent she will be able to do so will depend on the extent to which she will be willing to cooperate with all nations, regardless of their nationality, and to help materialize the aspirations of the people of the world.

The report makes it clear that the American Foreign Aid Program has been established in accordance with the idea of promoting world interdependency, and, also, that the development of world economy meets the ultimate goal of human accomplishment.

On America's understanding of the above subject, The New York Times mentions in an article of June 16, 1958, as

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follows: "This report, despite its revolutionary concept, is
unlikely to arouse as much controversy or have as much
immediate impact in Washington as did the previous reports
of the Rockefeller project. The reason, in the opinion of
panel members that prepared the report, is that there exists
in this country no pressure group for foreign economic policy.
Other aspects of national policy have a highly vocal
constituency but, as the panel observed, the public seems
unaware of America's crucial stake in the world economic
and social progress."

But Americans, alone, are not to be blamed for this.
We can say the same thing about the people in the rest of
the world. We are now living in a period in which a strong
realization of the purport of human activity in the latter half
of the twentieth century is required. We should stand up for
the welfare of the human race. The matter cannot be left
only to the hands of Americans. We, also, must act as a
member of the world and cooperate to establish a world-wide
united economic community and help develop world economy.

## 2. The Idea of the World Economic Structure

I wish to add a few words to the report which may
help to better understand the world economic structure of
the latter part of the twentieth century pictured in this report.

The improvement of economy is a means to the
betterment of the human race. Both political and social
freedom come into existence only with the help of economic
strength; this enables mankind to maintain dignity. A
characteristic of twentieth century man is a strong desire to
increase economic strength in order to improve both the
social and economic structure of the human race. Human
energy is concentrated on this. All efforts made in
connection with the economic problem, agreements made
between nations and the want to establish a world-wide
united economic community are derived from the desire of
improving the economic and social life of the human race,
not of a specific person or of a specific country but of the
entire human race.

A united economic community would strive for
improving and promoting the betterment of the social life of

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mankind. This is the difference between the nineteenth
century world economic unity and that of the twentieth
century. In the nineteenth century an economic cohesion
existed in some sense, but it was not derived from the
desire to improve the life of all nations.

Then what is an ideal world economic structure that
will cover the wants of all peoples? I think it is a united
world economic community which would stand above all
nations. A world in which the entire human race will be one,
where there will be a single world government, and where
the world economies will be united as one. Then complete
freedom of the use of resources will exist; there will be
freedom of transference of capital and labor, exchange of
technical knowledge, and circulation of the products. It
will be a world of unlimited possibilities. And the economic
strength produced from such a world would contribute greatly
to the welfare of all mankind. This idea is not mere fantasy.
Today, no, mankind cannot leap to such an economic level.
But there is a great possibility in the future.

To perfect the idea of a world-wide united economic
community, there must be a cohesion of all nations and all
races. However, when we observe the world movement of
today, transcending the idea of race, we find various
international and active organizations of arts and science,
sanitation and engineering, established on one hand while
some races are still building their new countries and
showing strong color of nationalism. This is a transitional
stage which may exist for some time. We are now at the
stage where we cannot ignore the existence of the struggling
nations, while just hoping for the promotion of equal welfare
of all countries. An isolation of one nation will not be
permitted, but at the same time we must consider the
welfare of all people based on each nation. This is the
characteristic of the latter half of the twentieth century.

This report admits that we are now in the stage where
the existence of each nation cannot be ignored, and hence,
at this stage, establishments of regional communities are the
only possible solution; but the report also presupposes the
ultimate goal, where establishment of a larger community
would be possible. The report expresses the above idea in
the following words: "Regional arrangements will give

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meaning to the hope and desire of mankind to make a larger
joint community." I think this conception was derived from
the idea that though the progress of both the social and
economic life of the human race, at the present stage, can
only be made on the realization of each nation, if each
nation continues to seek independence, the world would
finally split into isolated parts, the situation of which would
by no means help promote world economy. Also, it is
impossible for America to promise economic aid for over
eighty nations and their economic development. We must
admit the process of establishing the dignity of the human
race by respecting the independence of each nation.
However, on the other hand, if each nation continues to
clamour for independence, it would present a problem in the
development of industry in the view of world economy; it
would also create hindrance for the exploitation of natural
resources, for the circulation of capital, technology, and
freedom of trade.

There is this over-all dangerous trend even among
the nations which are not considered extremely nationalistic.
Hence, the idea is to promote national development of world
economy by preventing the nations to be isolated, and by
establishing regional communities whenever possible. We
can say that the idea of establishing regional joint
communities is an aiming for the adjustment of the paradox
created between nationalism and internationalism. The
problem we are now facing is to make adjustment to the
condition created by nationalism which becomes a hindrance
to the welfare of the human race; and, at the same time, to
respect nationalism and promote equal and free welfare of
each nation in its economic and social life. The present
condition of the world is that stronger nations are located
where communication and unity are simple to acquire. The
less-developed nations are not only politically, socially,
and economically weak, but are located in areas where it is
difficult to establish communication with other nations. The
report even explains that sound development and security of
the less-advanced countries are essential for the welfare of
mankind.

[10]

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3. International Cooperation Based on the Law of Interdependency

The reason for establishing a world economic community
is that, by doing so, it would enable the related nations to
fulfill their economic needs. The happiness and prosperity
of nations depend upon the establishment of such a community.
No nation has sufficient resources for self-support.

The basis of the twentieth century economic structure pictured in this report is built on the idea of international cooperation by the law of nations' interdependency. The characteristic of the present condition is that all nations are growing more and more interdependent; the less-advanced countries need technological help from the advanced countries, and the advanced industrial nations depend upon the natural resources of the less-industrial nations.

The industrial nations, also, need large overseas markets for their products. It is important that all nations in the world would prosper together, since the economic difficulty of one nation would cause another nation's economic drawback. In other words, if the under-developed countries would be able to partake in the world economy as equals to the advanced countries, it would be a merit of the whole free world.

I would like to call this conception internationalism based on the law of nations' interdependency. This is a fundamental idea, a necessary understanding for the construction of the economic world community which would make possible the development of world economy and fulfillment of human aspiration of our age. This conception is very practical and easy to understand for the people of any nation.

To participate in the economic structure of the free
world of this age, the report explains, would mean not only
benefits to your own nation but gains for other nations as
well. Also, the interdependent relation of nations is more
apparent among nations with similar conditions, historically,
geographically, socially, and economically. The

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establishment of economic regional arrangements among
these nations is most possible and natural. The task of
strengthening the economic cohesion of the free world
transcends ideas such as economic imperialism. This
is the great difference between nineteenth century and
twentieth century economic structures. In the case where
the advanced nations of this age help promote the economic
growth of less-advanced nations, the help they extend has
no political strings attached to it; in other words, it is not
the case of capitalistic imperialism. The advanced nations
help the less-advanced nations to become independent and
responsible members of the world economic community,
capable of having equal interdependent relations with other
nations.

For example, the nature of American economic aid
for the under-developed regions is derived from the idea of
international cooperation based on the law of interdependency
among the nations. To have deep understanding of the idea of
international cooperation and to actually extend practical help
to other nations is very important; especially in the case of
the nations which recently proclaimed their independence,
it is very necessary to extend help to them since their econ-
omic independence is regarded as an important condition
for their political independence. However, the law of
interdependency between nations is by no means a new idea;
reciprocal trade agreements were established on the above
idea. If there is anything new in this idea, it is the fact
that the idea was diversified and expanded onto an inter-
national level. By starting off with the concept of
interdependency of nations, it is an inevitable course to
develop toward establishing a world community which
transcends all boundaries. Inevitably, there exist different
degrees of relationships among the interdependency of all
nations, and it is natural that it will take the course of
first having a regional arrangement of world community and
gradually extending its hand to other parts of the world.
Conclusively, we may say that though regional arrangements

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originally were made to suffice the aspirations of all nations,
they contain the danger of causing regional confrontation
because of the uneven distance of relationships between
nations. Also, though this report shows us the nature of
interdependency, only in a universal and general sense,
inevitably, there exist different degrees of dependency
among nations. The degree of dependency of nations on the
world economy, of course, differs in each nation. For
instance, even American economy relies upon world economy
in a sense that the world market and the resources of other
nations are indispensable for the development of American
economy. But the degree of its reliance upon the world
economy, naturally, would be different from that of other
nations. Therefore, even when it is apparent that free trade
would eventually bring profit to American economy, people
in America tend to be indifferent to this subject. I would
like to acquire a concept of world economy which would
propel a driving force to the design of a valid twentieth
century economic structure.

4. The Regional Arrangement

The report explains the regional arrangement to be a
step toward the ultimate goal of the establishment of a
world community among the free world. Regional
arrangement is a natural outcome for the countries which are
similar in geographical and historical conditions, and when
there is a foundation between them to make effective,
cooperative effort to attain common interests and goals.
Such regional arrangement could also work out to give
meaning, aspiration, and hope to these people for the
establishment of a greater and profoundly integrated
community of human beings. Of course, the regional
arrangement mentioned in the report is not referring to
regional self-supportability. It is not the idea to increase
the hindrance amongst nations but to take away those
boundaries that hinder freer circulation.

As mentioned above, regional arrangement plays an
important part in this report regarding the economic
development of the free world. The over-all trend of the
present world is directed more and more toward the
development of regional arrangement. The European Common

-9-

Market, for example, became effective on January of this
year. Also, America is trying to establish a regional
arrangement in the Western hemisphere as a model for the
world's regional arrangement. Three countries, Ghana,
Guinea, and Liberia, of West Africa have recently planned
to organize an African community. In South America,
Argentina, Brazil, Chile, Bolivia, Uruguay, and seven other
countries announced the plan of establishing a free trade
region among them.

The report goes on to explain that it is indispensable
for twentieth century free nations to enter regional
arrangements. Since, on one hand, the independence of
each nation must be respected, and this is the most
important condition in international politics, and on the
other hand too much independence of each country limits free
communication, free trade, and development of world
economy. Hence, there is a need of an adjustment such as
the regional arrangement before going into the world
community stage. Though the contents of regional
arrangements vary, let us observe the European Common
Market, for example. The arrangement of this market is to
make economic unity for six participating countries: France,
Germany, Italy, Luxemburg, Holland, and Belgium within a
twelve or fifteen-year period. The purpose of the
arrangement is to abolish, within this period, trade
obstructions, allotment of custom duty, etc., and levy a new
standard duty against imports from the non-participating
countries. There will be no limits nor barriers on service,
labor, capital, or industry among the six participating
countries; payments will be free. It is essential for the
colonies and dominions of the six countries to participate in
the Common Market. Cartels and other similar trade
limitations will be prohibited, except for special cases.
Participating countries will cooperate in the currency and
financial policies. Cooperative agricultural policies will
be enacted. Two investment funds will be established; one
will be for European investment, and another will be for
colonial investment. The payment of labor will be more or
less standard. To relieve possible dangers to the working
man caused by the establishment of this arrangement, a
social fund will be established.

As is apparent, the purpose of this arrangement is to
unify the regional economy and to accomplish that goal, it

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will have to limit some national sovereignty. The European
Common Market unifies and at the same time frees the
economy of the participating six countries. But, as yet, we
do not know what the relationship will be, between this
powerful economic region and other non-participating regions
of the world.

It is needless to mention the significance of the
regional arrangement which relieves and solves the paradox
created between nationalsim and internationalism. But
whether the regional arrangement would naturally develop
into a larger joint body which would be sufficient to cover
the aspiration of the whole human race is a good question.
First of all, there is a danger of isolating the regional
arrangement from the economy of the rest of the world.
Second, the arrangement will be easily established in some
regions, but in other regions it would be extremely difficult.
Third, when a powerful arrangement would be made in the
region where it is simpler to establish, there is a danger
of that arrangement having a dominating effect on other
economic regions of the world, especially, against the less-
developed countries.

Therefore, I suggest an investigation committee,
such as this Fund, to divide the world into several regional
arrangements and to measure the economic power of the
regions, presuppose the contents of the arrangements, and
suggest various plans which would secure economic
communication between the regional arrangements. This
would give a clear idea of both the defects and merits of
regional arrangements. This can be done if ample statistical
material would be used.

Naturally, the actual investigation should be
performed by the related nations of each region, but the idea
of such a design would undoubtedly take the leadership.
Also, in the regional arrangements of under-developed
countries, we would like to see the time when the relative
arrangements would be made by overcoming the difficult
conditions, in which case the arrangement should include
all nations of the region as members and should help promote
the exploitation of natural resources and the development of
the regional industry. According to my suggestion, the
regional arrangement would start off not as an independent
region but as part of one systematic world organization.

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5. The Freedom of Trade

According to the report, more than 18 per cent of
world production circulates through international trade. The
improvement of social life and the development of world
economy depend on the increase of international trade. Even
in the gigantic economy of America where foreign trade, both
import and export, occupies only 8 per cent of the whole
production of the country, the enlargement of foreign trade is
indispensable for its economic development. Approximately
half of the metals used in United States industry are
imported; three-fourths of the paper used for newspapers,
raw rubber, 18 per cent of iron and steel and more than
15 per cent of petroleum are also imported. On the other
hand, 9 to 10 per cent of the durable American products
are sold in foreign countries; this trading act is an indicator
as to whether or not the American industries are on the side
of making profit or else loss. Though the amount of imports
to America seems to be small in comparison to the size of its
whole economy, it is serving as the main source of income
of dollars for the exporting countries. Hence, even the
smallest change in the size of import and export business of
America would greatly affect world economy.

The report also explains that because of the
important role the American economy plays, the best
contribution America can make to the development of world
economy is to maintain its economic power, growth, and
stability. The report concludes that the free trade policy is
the core of economic policy.

According to the report, free trade is the foundation
of the new world economic structure; at the same time, we
should not ignore the importance of free trade for the
development of American economy. The free trade principle
of America plus the purchase power of America in regard to
world production, and its stabilization would greatly
influence the world economy. It is clear that the American
trade policy has been operating under free trade principles
since 1934, but in view of their domestic policy, they are
only making a gradual change on the reduction of duties.
Also, there are actually many people who still claim
protected trade.

When one listens to the discussions of America on
tax reduction and talks on the problem of the renewal of
trade agreements, one gets the feeling that free trade is
receding.

I respect the report for having frankly stated the
importance of free trade, claiming that free trade is the core
of sound economic policy. This is an indication of their
deep comprehension of the issue, and it also presents a
clear and possible solution of the world problems.

Though very few people object to the idea that free
trade is important for the development of world economy and
for the promotion of the happiness of nations, the actual
condition of the world is far from the idea. One of the
important tasks for the present world economy is to reduce
and solve the hindrance which exists in world trade. The
exploitation of the world's natural resources would advance,
the production of industrial countries would increase, and
the economy of less-advanced countries would develop if
free trade would be promoted. Free trade would help
establish a firm ground for world peace by strengthening the
cohesion of all nations. The American C.E.D. (Committee
for Economic Development), in discussing the European
Common Market, explains as follows the reason for the
unexpected retarding of circulation of world trade and capital
since 1945:

1) The damage to the world economy was very serious, and hence it needed time and help to recover from it.

2) The demand of the world for the market to promote economic development was unexpectedly strong, especially among the under-developed countries.

3) Extreme nationalism.

4) The overestimation of inflation, problems of economic development, and the improvement policy of the market condition.

5) The opposition between the communist bloc and the free world.

I have mentioned, already, the enormous power the
American economy holds for world economy. This report
emphasizes the point that America should have the
leadership for the construction of a world economic structure
for the latter half of the twentieth century. The report was

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written at the time when the American international income
was not too bad. The income started receding greatly from
late 1958 to 1959, and gold holdings started to show extreme
decrease; it declined to less than 200 billion dollars. Among
the economists and those who claim protected trade
principles, some started to demand the diversion of credit
policy in domestic economic policy, the cutting down of
imports by increasing the import duty, and the curtailment of
foreign aid.

It is, of course, very important to prevent inflation,
but at the same time it is wrong to calculate the danger to
American economy just by the outflow of gold within the
years 1958 to 1959. Even considering the increase of Short
Period Foreign Credit, the amount of money holdings of
200 billion dollars is sufficient enough to hold the foundation
of American current money trust. On the other hand, the
gold outflow helps to preserve the stability of the currencies
of European countries and Japan, the condition of which is
for the betterment of world economy and which ultimately
would give good influence to the American economy as well.

If I would explain, briefly, the actual condition of
American balance of payment, an export surplus of fifty-two
billion dollars can be seen even in 1958, the year in which
the gold outflow had just started. The export surplus started
to decrease this year, but the point is to what extent the
export surplus would decrease.

However, notwithstanding the present decrease in
American export surplus, there probably will not be any
change in its private overseas investment and governmental
payments for foreign aids and others.

What is the fundamental cause for the export
recession of the United States? To my observation, the
main cause for the above is in the restoration of European
economy. This year, for the first time, we see over-
importation on the American side in the American-European
trade market. A similar trend can be seen in the present
American-Japanese trade market.

What is the policy that the related nations should
take under such conditions? For the European countries,

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they should take a step toward free trade by relieving or
eliminating tariff walls, foreign exchange restrictions, etc.
This will help promote trade and solve the American gold
outflow problem. The same thing can be said in the case of
Japan. It is wrong, as I have previously mentioned, to raise
a danger signal so hastily against the strong, enormous
American economic power, but it is equally wrong to depend
too much on America alone for the development of the world
economy. Even America, domestically, has various problems
and difficulties of its own; the examples of which are: the
financial unbalance, the resistance against cost inflation by
wage increase, etc. On the other hand, the nations which
improved their international accounts by the outflow of
American dollars should start looking for investment
possibilities. This is the actual condition of the world
economy. But there is one problem. As this report explains,
the American foreign aid plan is made in accordance with the
belief of international cooperation based on the law of
economic interdependency, and this idea is gradually being
understood among the less-advanced nations. However,
some problem may arise in the case of European nations if
they should intend to make overseas investments. Hence,
the European nations, which are veterans in colonial policy
should tactfully handle their investment to avoid
misunderstanding of the less-advanced countries in the
motives of their actions. The report also firmly advises the
use of an American development loan fund for the aid of less-
advanced nations; it would be ideal if arrangements would be
made to have the aid fund circulate through the United
Nations organization. After the reduction of armaments, the
condition in which both the East and the West would make
constant competition is in their foreign aid program, the
only remaining weapon they can use for persuasion. Hence,
it would be best to let this aid be handled by the United
Nations.

6. The Problem of the Under-Developed Countries

There are three major problems, at present, which
the world is confronted with. One is the opposition of the
free world and communism; the second is the social and
economic growth of nations; the last is the economic
development of the less-advanced countries. The report
explains the historical process of the fall of the colonial

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policy, the development of national movements, and the
economic development of the under-developed country as
follows. The advanced countries which originally
established unified colonial regions and at the same time
brought in the idea of the participation of the people in
politics, in effect, caused their own banishment from the
colonies and the overthrow of colonial policy. The colonial
system was thus abolished; but whether or not the new
democratic countries established in the old colonial regions
would be able to make social and economic development
which would suffice the need of the people is a good
question. This is, of course, the responsibility of the newly
established countries, but it also has a deep connection
with the economic conditions of other countries. The
economic problems of the under-developed countries, at
present, are certainly the concern of the whole world. The
standards of living of the under-developed countries are
below average, and there is a tremendous gap between that
average and the high standard of living of the advanced
countries. The people of the under-developed countries are
living in a social and economic standard equivalent to that
of the eighteenth and nineteenth centuries, which certainly
can be considered the lowest in this century, while aiming
to reach the high standard of living of the advanced nations.
They are in a handicapped condition politically, economically,
and socially, which makes it difficult to make rapid economic
development; though they are trying hard to fulfill their
economic needs, the result is unsuccessful.

After the Second World War, the rate of economic
growth in the advanced nations rose at least 4 or 5
per cent, whereas it was only 2.5 per cent in the
case of the less-advanced countries. Moreover, there has
been a rapid increase in the population of the less-advanced
countries; and in many regions they are barely maintaining
their present economic condition without having any
improvement because of this population problem.

The problem of the economic development of such
under-developed countries is an important matter of concern
for all people of our century. Today, everybody realizes the
necessity of cooperation of the advanced countries in the
development of the less-advanced countries. But what is
the fundamental idea which supports the act of cooperation?

- 16 -

In my opinion, it is neither a political problem nor the
economic problem of interdependency, but the moral of the
society which supports the act. The great task of
constructing a twentieth century world economic structure
would be completed only after the standards of living of less-
advanced countries are raised to the level at which they are
able to participate in the world economic structure as equal
members. This effort precisely would be something that the
people of the twentieth century could be proud of for future
generations. If the people of the world take up this problem
of developing the under-developed countries as their common
responsibility and cooperate in creating a better environment
for the economic development of the under-developed
countries, we may be able to see better results in the project,
even if it takes more time than some of the people in the
under-developed countries are now expecting.

If the world economic structure were to be constructed
without solving this problem of the under-developed countries,
there would be little difference from the nineteenth century
economic structure in its consequence. We are not
necessarily far from such a danger; and I would like to urge
all men to be especially self-critical on this problem.

According to the report, the capital invested in the
under-developed countries by the free world amounted to
170 billion dollars; the investment made on industrialized
regions, on the other hand, was 1,460 billion dollars, while
the population of the under-developed countries exceeded by
twice the population of the industrialized regions. The report
explains the inflow of capital to the under-developed
countries, which shows an increase and which makes great
economic results if only there would be an appropriate
political and social organization to take care of the matter.
I should think if the tension of the present world's political
outlook would be relieved and if the problem of the reduction
of armaments would be solved, the political situation of the
under-developed countries would greatly improve. They
would then start to receive more private investments and
foreign aid from the advanced countries, which would help
develop their economic power.

In regard to another aspect of this report, I should
like to look at the problems of the opposition of the free

- 17 -

world and the communist world, and economic growth in
relation to this opposition. There is no point in discussing
the subject in detail, but I should like to express briefly my
opinion on the subject.

On the opposition of the two worlds: there is not
much sense in discussing the fundamental problems of
ideology; it is even dangerous to do so. The immediate
problem which the two worlds should consider is to earnestly
seek ways of solving the actual problems they are confronted
with; this, in turn, would make it possible to relieve tension
between the two worlds and to maintain peace. Without
peace, there could not be any economic growth.

The communists, in the meantime, may be able to
make great advancement in their social and economic growth;
and if it is clear to the world that there is a possibility for
the two worlds to be on approximately the same level in the
standards of living, it would be a guarantee for world peace.
Though the difference of ideology seems to be the fundamental
problem, actually this problem of ideology is reminiscent of
the social paradox which existed in the previous generations.
The controversy between ideologies would become
meaningless if it became clear that it is possible to raise the
social standard of all nations to the same level.

Although there is a strong competition between the
two worlds on economic growth, there would be a great
change in the social outlook of the under-developed countries
if the economic power increased by world economic growth
and reduction of armaments were applied to the raising of the
standards of living of the people in the under-developed
countries.

Hisanori Munakata

September 1, 1959

In respect to the final part of my comments and views,
I refer the reader to the following excerpt: "The number one
problem in Asia today is not Communism but that millions of
people want a better life and have discovered that poverty,
hunger, and pestilence are not the immutable destiny of man."
Adlai E. Stevenson, _What I Think_ (New York, Harper and
Brothers, 1954), p. 103.

English Translation*
of
POSTSCRIPT
by
Hisanori Munakata

Prior to the publication of the original of this report, its outlines were made public in *The New York Times* in June, 1958. I was able to read them, thanks to the kind consideration of Mr. Roger Evans, Rockefeller Foundation. Although I did not necessarily agree with every detail of this Report, I was deeply impressed with its noble idea and concrete recommendations. This is the reason I have decided to translate it into Japanese and make explanations about it. I have done it word for word, and, in consequence, there are many points which are rather hard to understand at a glance. On the other hand, however, it may, I hope, contribute something toward tracing the train of thought of the drafters of the Report. Mr. George Kuzuoka, English scholar, helped me in the translation. First I intended to make explanations very short, but as I went on reading the Report, I was tempted to express my private views on various points. Thus it took me a pretty long time. I shall be very much obliged, if any one is so kind as to read my explanations and private views along with the original text. The cover of this book was designed by me.

I am intending to publish hereafter my views and explanations about foreign literature on international questions in a series of studies on international economic and social problems.

*English translation done by Mr. Munakata.

ROCKEFELLER BROTHERS FUND, INC.

30 Rockefeller Plaza
New York 20, New York

Special Studies Project
Room 922
50 Rockefeller Plaza

July 13, 1960

MEMORANDUM FOR OVERALL PANEL

We will be pleased to have from you the names and addresses of those persons to whom you wish to send copies of the democracy report directly from this office. Although the document will not be published before mid-September, we would appreciate your returning this form as soon as possible.

If you send us your personal cards or a letter, we will attach them as you direct.

I. **Advance copies** -- Although "advance copies" of this report will be printed rather than mimeographed, we would still like to strictly limit the number because of the press release problem.

II. **Copies to be mailed on date of publication** -- If your list is lengthy, it would help us tremendously to have the names and addresses typed directly on mailing labels.

III. **Number of copies to be sent directly to you** --

Signature

Special Studies Project
Rockefeller Brothers Fund
Room 922, 50 Rockefeller Plaza
New York 20, New York

September 2, 1960

Subject: <u>Selection of Dates for Twelfth Meeting</u>

Would you be good enough to send this form to the above address
by return mail, indicating your availability to attend on the dates listed
and which date you would prefer. A self-addressed envelope is enclosed
for your convenience.

If at all possible, we would appreciate your holding your calendar
open on these dates for the next few days. After all participants have
indicated their preferences, you will be notified immediately of the
definite time and place of the meeting.

| | First <br> Preference | Second <br> Preference | Third <br> Preference | Not <br> Possible |
| :--- | :--- | :--- | :--- | :--- |
| **October 4, 1960** <br> 3:00 - 10:00 p.m. | | | | |
| **October 5, 1960** <br> 3:00 - 10:00 p.m. | | | | |
| **October 6, 1960** <br> 3:00 - 10:00 p.m. | | | | |

Signature

* Subjects to be raised if time permits.

* VII. Summary of the Democracy report

* VI. Television Debate program - NBC - "Are Royalty Programs UnAmerican?"

D. Translations

C. Promotion

(b) Doubleday attached

B. Price of paperback volume. (Draft letter to Doubleday attached)

A. Publication Date (Draft letter to Doubleday and Publisher)

* V. Contract with Doubleday -- Unsettled points between Fund and Publisher

* IV. Schedule for Publication

C. Doubleday still prefers "Strategy of Freedom"

Excellence and Freedom (Doubleday)

Strength and Freedom

Purpose, Strength, and Freedom

memorandum, additional suggestions:

B. Alternatives listed in October 14

sheets do not from Doubleday.

A. Deadline is October 24, when order

III. Title

II. Introduction - Content (Memorandum, October 14, Distributed)

I. Preface - Content (Memorandum, October 14, Distributed)

## AGENCY

October 13, 1960, 2:00 p.m.
Radio City Music Hall Executive Suite

Planning Committee

Rocketelli Brothers Fund, Inc.
Special Studies Project

DRAFT

October 14, 1960

Mr. Richard Winslow
Doubleday and Company, Inc.
575 Madison Avenue
New York, New York

Dear Mr. Winslow:

The manuscript for the volume of _The Rockefeller Panel Reports_ is now in your hands and we very much appreciate your continuing helpfulness in making this publication a fitting capstone for the Special Studies Project.

It seems of utmost importance to us that both editions of the volume be published by March 15, 1961. We are extremely anxious to have the work available for use in school and college curricula for the academic year 1961-62; educators begin selecting their materials for courses that year early in 1961. Secondly, as you know, one method by which we hope to increase distribution of the work is through philanthropic organizations.

It is essential from this standpoint that copies for this purpose be on hand as early in the new calendar year as possible when such organizations are programming their activities. Thirdly, we feel that the Reports in book form will be even more appropriate for foreign translation than the individual pamphlets, and I am certain you appreciate there is absolutely no time to be lost in this area. Fourthly, we are of the opinion that serious books of this type have a better reception by the general public earlier in the spring. Our opinion on this matter has been confirmed in conversations with other research groups. Finally, it is our conviction that for the sake of the continuity of the Project itself and the sense of urgency repeatedly expressed by our Panel members, an early 1961 publication date is again indicated.

We would have preferred to have the volume appear in January or February but recognize the effect upon your scheduling of our unavoidable delay of a month in delivering the manuscript. I hope, however, that it will be possible for you to give every consideration to this request for a publication date of no later than March 15.

With many thanks,

128

kindly

With many thanks

to the request for a publication date of no later than March 12,
however, that it will be possible for you to give every consideration
undertaken by a month in delivering the manuscript. I hope,
or February, but recognize the effect upon your scheduling of our

Our Panel members, an early 1981 publication date is also indicated.
of the Project itself and the sense of urgency repeatedly expressed by
members. Finally, it is our conviction that for the sake of the community
on this matter has been confirmed in conversations with other research
receivers by the general public earlier in the spring. Our opinion
we are of the opinion that serious books of this type have a better
chance there is absolutely no time to be lost in this area. Fortunately,
translation than the individual pamphlets, and I am certain you appre-
that the Reports in book form will be even more appropriate for panelist
organizations are programming their activities. Thirdly, we feel
be on hand as early in the new calendar year as possible when such

It is essential from this standpoint that copies for this purpose
work is through philanthropic organizations.

know, one method by which we hope to increase distribution of the
materials for conferences that year early in 1981. Secondly, as you
to the academic year 1981-82, educators begin selecting them
to have the work available for use in school and college curricula
volume be published by March 12, 1981. We are extremely anxious
It seems of utmost importance to us that both editions of the
special Studies Project,
helpfulness in making this publication a fitting capstone for the
is now in your hands and we very much appreciate your continuing
The manuscript for the volume of The Rocketsteller Panel Reports

Dear Mr. Winston:

New York, New York
232 Madison Avenue
Douglas and Company, Inc.
Mr. Richard Winston

October 14, 1980

DRAFT

DRAFT

October 14, 1960

Dear Mr. Winslow:

In regard to the retail price for the proposed paper-back edition
of the volume of *The Rockefeller Panel Reports*, I understand your
present estimate is $1.95 per copy. I cannot help but think that
this will greatly diminish the distribution of the edition and, therefore,
its value from the viewpoint of the Fund. As you know, it has been
our thought that this form of publication would be particularly appro-
priate for student use and a difference of 50¢ in this area could mean
a tremendous loss of potential readership. I have looked into the
prices of roughly comparable works, such as Anchor's "American
Strategy for the Nuclear Age."

Naturally, we would be glad to discuss the question of price
with whoever is in charge of such matters at Doubleday, but I hope
that favorable consideration will be given to our suggestion that
the paperback edition of *The Rockefeller Panel Reports* be in the
$1.45 a copy price range.

LAK

Sincerely,

31.42 a copy price range.

the paperback edition of *The Rocketteiler Panel Reports* be in the
that favorable consideration will be given to our suggestion that
with whoever is in charge of such matters at Doubleday, but I hope

Naturally, we would be glad to discuss the duration of price

strategically for the Nuclear Age."

prices of roughly comparable works, such as Anchor's "American
a tremendous loss of potential readership." I have looked into the
prize for student use and a difference of 50¢ in this area could mean
out thought that this form of publication would be particularly appro-
ous its value from the viewpoint of the Fund. As you know, it has been
this will greatly diminish the distribution of the edition and, therefore,
present estimate is $1.92 per copy. I cannot help but think that
of the volume of *The Rocketteiler Panel Reports*, I understand your

In regard to the retail price for the proposed paper-pack edition

Dart Mr. Winslow:

New York, New York
322 Madison Avenue
Doubleday and Company, Inc.
Mr. Richard Winslow

October 14, 1960

DRAFT

Overall Volume
Introduction
September 22, 1960

GENERAL COMMENTS - 2

McCORMACK: John Gardner's draft is beautifully written and sensitively tuned to the deepest human interests. I very much hope that Americans, as a people, do possess the qualities he ascribes to us, and that our motivations and goals are as he describes them. My recommendation for modification of the document falls at a considerably less lofty philosophical level.

The Project was designed to deal with a ten-year period, of which three will have gone by when the book appears. Because -- at least partly -- of this comparatively tight time limitation, the reports of the individual Panels strike a note of urgency in a number of places. Panel II, additionally, being charged with the subject of the role of force in world affairs, found it necessary to state some facts -- as we saw them -- which are unpleasant as well as urgent and go well beyond the accustomed lexicon of "defense" in defining some rigorous responsibilities of the United States. I accordingly suggest that the Introduction, to be fully representative of the whole text, should ring a little more stridently in a few places. The purpose might be served by a sentence or two in the areas of lines 6-11 on page 6 and lines 9-15 on page 8 of the September 22 draft.

CONFIDENTIAL

March 1961

Excerpts from Selected Letters Received
concerning
PROSPECT FOR AMERICA

Langbourne M. Williams, Freeport Sulphur Company, New York

I admire tremendously the imagination and enterprise and
patriotism that prompted these studies to be made and the dedicated
effort that was made by such a wonderful group of people in connec-
tion with this work. I congratulate you heartily on your personal
participation and leadership in a most worthwhile and significant
enterprise.

William S. Paley, Chairman of the Board, Columbia Broadcasting System

... There is no question that the Rockefeller Panel Reports, as they were issued separately, had a most stimulating effect on those who are concerned with the critical areas of our national life which were covered by them.

Also, I am sure they had influence on the actions and the
decisions that were taken and made by various groups in our society.
This influence, I am sure, will continue to bear on those problems still
calling for attention and action.

Rt. Rev. Msgr. James P. Shannon, President, St. Thomas Military
Academy, St. Paul, Minnesota

... We who are engaged in education are deeply indebted to the Rockefeller Brothers Fund for its abiding interest in the essential problems of our day and culture. May God bless you for your fine work.

James B. Fisk, President, Bell Telephone Laboratories, Inc.

... This has been a farsighted enterprise from its conception
and, I believe, a most valuable contribution to the country in its
execution. It was a privilege to have had some small part in it.

["execution. If was a privilege to have had some small part in it, and, I believe, a most valuable contribution to the country in its execution. This has been a farighted enterprise from the始 of its existence.", "James B. Riek, President, Bell Telephone Laboratories, Inc.", "work problems of our day and culture. May God bless you for what time the Rocketteller Brothers Fund for its abiding interest in the essential ... We who are engaged in education are deeply indebted to", "Academy, St. Paul, Minnesota", "Rev. Mr. James P. Shannon, President, St. Thomas Military Academy, St. Paul, Minnesota", "Calling for attention and action.\n* The influence I am sure, will continue to bear on those problems still before covered by them.\n* Who are concerned with the critical areas of our national life which they were issued separately, had a most stimulating effect on those who are concerned with the critical areas of our national life