The Climate of Aid

From Washington last week came the first statistics on the much-touted Communist economic offensive.

The big item: of a promised $500 million in economic credits and grants-in-aid the Communists have delivered $23.4 million--between 4% and 5% of their promises. The U.S. has sent $37 billion abroad since the war, including $4.3 billion to the Middle East alone.

Other sample comparisons:

India. Since 1950 the U.S. has made outright gifts of about $266 million, plus loans of $272 million; the Communists have contracted to build a 1,000,000-ton-capacity steel plant on an $80 million to $95 million loan at 2 1/2% to be repaid in twelve annual installments.

Pakistan. Since 1951 the U.S. has made gifts of $290 million and loans of $65 million; the Communists have advanced 200 tons of tubing and three mobile electric stations for drilling rigs.

Egypt. Since 1952 the U.S. has given $62.3 million in technical and development aid, recently offered $55 million more to help start the new Aswan dam; the Communists have made several offers of aid, including "a new railway network" and a $5,600,000 electric plant.

Indonesia. Since 1949 the U.S. has given about $142 million; the Communists have offered an $8,000,000 loan to rehabilitate a sugar mill.

Despite their negligible showing on actual aid delivered, the Communists are getting political results that are far from negligible. In many underdeveloped and new countries, the climate of opinion is strongly anticapitalist, especially where capitalism can be linked to memories of imperialism. Government-to-government aid from the U.S. does not necessarily become an argument for free enterprise. Government-to-government aid from Moscow fits ideologically into the planned economy, anti-free-enterprise prejudices of those countries.

Economically, Red aid to underdeveloped countries cannot hope to rival U.S. activity. Propagandistically, the Communists are getting a lot of mileage out of each ruble that goes abroad.

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