◆ SpookStack

~{§ ——-can—-most-efficiently_be shared by all,” declared velopment Loan Fund loans totaling $172.2 mil- President Eisenhower's letter transmitting the report to Congress. The report declared it has become increasingly clear that the Western industria] nations must make available to the Jess developed countries the knowledge, advice, and capital to allow economic development within the framework of a free society. The report added: If they do not do so, the political and economic influ- ence of the Communist system will be firmly established over whole continents, where the fateful first steps of political and economic development are now being taken.... It behooves the Western democracies to demonstrate by their ald and encouragement that economic advancement ean be achieved without putting on the straitjacket of political and economic tyranny. Reporting on mutual security activities during the semiannual period by areas, the report noted these developments: Europe. Economic aid virtually terminated, with only Spain, Yugoslavia, Iceland, and Berlin left as recipients, On the military side there was a significant increase in defense expenditures of our NATO partners, reflecting increasing eco- nomic stability and prosperity of Europe. Africa. Most pressing needs of new nations of Africa are, first, administrative, managerial, and technical skills, and, second, capital for develop- ment projects. A significant development in this area during the period was an increase in Soviet bloc activity, evidenced by acceptance of a $110 million line of credit by Ethiopia from the bloc and by a $35 million U.S.S.R. loan to Guinea. Near East and South Asia. The Near East en- joyed a period of relative calm. A significant de- velopment in South Asia was announcement of agreement in principle between India and Paki- stan on 8 plan to divide the waters of the Indus River system.” Far East. Largest allocations of fiscal year 1960 appropriations were made, as in the past, to the three divided countries—Korea, Viet-Nam, and the Republic of China—which must maintain large defense forces and are consequently in the greatest need of U.S. assistance. Flood relief pro- grams were undertaken in Taiwan, Korea, and Japan. Citing other activities of the Mutual Security . - Program during the period, the report listed De- 4 For background, see BULLETIN of Mar. 21,-1960,p. 442. - May 23, 1960 lion in 17 countries. In addition DLF negotiated——.__ 22 loan agreements in the amount of $130 million which represented earlier loan approvals. This activity brought the value of loan commitments issued by DLF since its inception to $908.8 mil- lion. All of the loans made for iridustrial projects were made to private borrowers, including a chemical and pesticide plant in Turkey, pulp and paper and cement plants in the Philippines, and phosphate minesinJordan. —_ A total of $32 million in special assistance funds was allocated for U.S. participation in the world- wide malaria eradication program. As a part of the Government’s overall plan in this field, the International Cooperation Adminis- tration continued to encourage private enterprise to participate more fully in economic development programs in Thailand, the Sudan, Jordan, Israel, India, Taiwan, Nepal, Ceylon, Ghana, and Greece. The report said the Mutual Security Program played no part in increases in the balance-of-pay- ments deficits of 1958 and 1959, pointing out, while there had been some increases in offshore procure- ment under nonmilitary programs, these increases were offset by decreases in offshore procurement under military programs. Although MSP did not cause the increase in balance-of-payments deficits, the report pointed to a new DLF procurement policy which could contribute to a reduction in the balance-of-payments deficit. The new DLF policy places primary emphasis on financing of goods and services of U.S. origin in procurement for DLF projects. Inter-American Advisory Committee _ Holds Fourth Meeting The Department of State announced on May 5 (press release 247) that the National Advisory Committee on Inter-American Affairs is meeting at the Department on May 6 and 7. Following his return to Washington Secretary Herter will par- ticipate in the meeting of the Committee on May 7. This will be the fourth meeting of the Commit- tee since its creation by President Eisenhower on Novamber 14, 1959.1 The purpose of the Commit- * 1did., Nov. 16, 1959, p. 708. 3 ¥or background, see BULLETIN of Dec. 7, 1959, p. 823, - 91s a Bs a soe a seg Som ENR me EE, = apy ee eon sapere oSetere are seeteme sone ay over Pe Ge ee ee gee ved