·ISSUED BY THE CONLONWEALTH
CONSULTATIVE COMMITTEE ON SOUTII AND SOUTH-EAST ASIA
ON WHICH ARE REPRESENTED THE GOVERNMENTS OF
AUSTRALIA
CANADA
CEYLON
INDIA
NEW ZEALAND
PAKISTAN
THE UNITED KINGDOM
TEXT WRITTEN BY THE ECONOMIC INFORMATION UNIT
OF THE UNITED KINGDOM TREASURY
PREPARED BY THE CENTRAL OFFICE OF INFORMATION

·New Horizons
in the East
SETIT
SOHAN LAL DUGAR
DONATION
THE COLOMBO PLAN
FOR CO-OPERATIVE ECONOMIC
DEVELOPMENT IN
SOUTH AND SOUTH-EAST ASIA

·IN ", ARMINA Kashmir Inn de PAKISTAN Total Pop. 82 million 20 N D 347 million AL PAKISTAN NA w Mschigi BRI ARABIAN SEA 10'N 1619 BAY OF BENGAL CEYLON Pop. 7 million 09 MAIN EXPORTS OF THE AREA INDIAN Almost all the world's JUTE Almost all the world's RUBBER More than % of the world's TEA of the world's TIN 10's % of the world's OILS & FATS ·100+ 110 Trong THE COUNTRIES OF SOUTH AND SOUTH-EAST ASIA 30 Z grey Countries of South and South East Asia are tiated Commonwealth countries are shown thus MILES 400 200 20* BURMA: op17million THAILAND Pop. 18 millon Cambodia INDO-CHINA Pop. 27 million NON 360 NORTH BORNEO Pop Imillion BRUNEI FEDERATION OF MALAYA Pop 5 million SARAWAK SINGAPORE "Pop. I milion OCEAN N E Pop 76 million 11 120€ ·CONTENTS PREFACE THE PROBLEM Page 5 THE APPROACH 6 THE PLAN 13 16 TACKLING THE JOB India Pakistan Ceylon Malaya and British Borneo TWO MAIN NEEDS 18 22 26 29 32 CONCLUSION Pith charts, maps, and 16 plates EXCHANOT RATES USED Rupecs (Rs) India and Ceylon : 13 337 4.77 Rupees (Rs) Paldistan : 9-27 Ci Sterling 3-32 Malayan Dollar (M$). 8-57 3-06) $ U.S.1 ABBREVIATIONS Malaya Federation of Malaya and Singapore Briush Borneo North Borneo, Brunei and Sarawak ·WHAT THIS BOOK IS ABOUT This book is based on a Report prepared at a meeting of Commonwealth Goveromeots in London in September 1950. The Governments represented at the meeting were Australia, Canada, Ceylon, India, New Zealand, Pakistan and the Vaited Kingdom. The main Report has been issued with the authority of these Governments and has been published under the uitle : The Colombo Plan for Co-operatite Economic Development in South und South-East Aria. Its treatment of the problem is necessarily technical. This book aims at presenting the subject matter of the Report in a shorter and simpler form. Both the main Report and this book deal with the whole of South and South-East Asia, and not merely with the Cocamooncalth countries. The Governments of the Commonwealth countries in the area have, however, supplied most of the detailed information used in the Report. These countries are lodia, Pakistan, Ceylon, the Federation of Malaya, Singapore, North Borneo, Sarawak and Bruges. Also included in South and South-East Asia are the following non-Commonwealth countries : Burma, Thailand, Indonesia and the three Associate Sates of Cambodia, Laos and Viet-Nam in Indo-China. These countries are faced by problems very similar to those which face the Commonwealth countries in the ants, asd it is hoped that they will decide lo con la thc co-operause work of the Colombo Plan.

·The Problem This book is about the peoples of South and South-East Asia, and about that they are doing to open up the great resources of their countries, so as to relieve the porerty and hardship which have been their lor for countless generations. Here is an area containing one-quarter of the world's populs. tion, rich in natural wealth, yet little touched by the revolution in methods of production which in 150 years has so transformed the face of the westem world. It presents a tremendous opportunity for development and a tremendous aced. THE STANDARD OF LIFE IS LOW There are over 570 million people living in the arcam for the most part hard-working men and women of simplc dignity and faith. Many of them are skilled in craftsmanship and in fashioning lovely things with their hands. They have inherited ancient cultures and philosophics, and their forcfathers were creating beautiful works of art at a time when many Western countries were peopled only by primitive savages. But no man can give of his best or enjoy life to the full when his stomach is empty and his body weakened by disease, and that is the condition of millions in South and South-East Asia today. The great majority live in villages and depend for a livelihood on the land. But not enough land is being culovated to support so many millions, and those who work it are not trained and cquipped to ger the best out of the soil. As a result food is scarce and lacking in sancty. The ordinary dier of most of the people in the arca is mainly cercals, pulses and other starchy foods which do not provide the fats and proccins for proper nutrition. A man may get as little as 12 ounces of cercals a day; this is in fact the present ration in many Indian towns. Average food consumpuon oser the arca as a whole works out at well under 2,000 calories a day, compared with obous 3,000 in Britain. Tith clothing the position is no better. In Pakistan, for instance, pcoplc have to make do with 9 yards of cotton cloth pcr head a year-barely enough to make tid garments, and thus in a country where it is extremely hot in summer and cold in winter. 6 ·The peoples of South and South-East Asia bare to live hard and many must die young. The proportion of babies tho die during their first year is more than four times as high as in Britain, and average expectation of life as birth is less than half as long. Some cight people out of every ten are unable to read or write. Acute overcrowding exists in towns and villages alike, with a one or two-rooned hut of mud or bamboo often serving the needs of a whole family and sometimes of their animals as well. WAR MADE TRINGS WORSE Living standards would have been low without the war, but the far has made things worse. Aluch was destroyed or damaged in the fighting, and under the Japanese occupatioa large areas of South-East Asia were plundered and left to go to waste. Railway tracks and engines were removed ; rubbes plantations and to estates were orergrown by jungle ; pover-stadions tere driven without proper care. Enormous Dumbers of water-craft and working animals were destroyed by Japanese troops retreating before the Allies or through the looting of farms and plantations by scarving refugees during the chaos which followed. Many of the leading citizens of the countries were murdered by the inrader. Losses were not confined to those parts of the area which trere directly involved in the fighting. The Indian subcontinent served as the great Eastern base of the Allied armies, and its industries, ports and railways were seriously overworked, with the result that at the end of the war there were coordous errears of repairs and maintenance to be made good. The task of recovery was pade more difficult by the political and social disturbances which occurred in many parts of the area after the war. The transfer of policial power to the new Governments of India and Pakistan **s carried out smoothly, but the partition of the country itself caused serious cconomic dislocation. In Malaya recovery has been hindered by IESTONİST activities, and there have also been grave troubles in Burma, lado-China and Indonesia. FAMINE NARROWLY AVERTED As a result of the war less food is at present being grown in South and South-East Asia than before the war. Yet there are now ten mouths to feed where previously there fiert ninc. Rutt » the main food of the peoples. Before the war India, Ceylos, Malaya and Indonesia all imponed rice from Ostrseas, and most of their imports came from Burmi, Thailand and Indo-China. These three countries together caported over 51 million tons in 1938. la 1916 their citors were down to usder 1 million tons, and though there has since bees some recorery, sports is 1950 are expected still to be less than half the Te-ar amount The drop in nice supplies during the wat was one of the main causes of the terrible fattinc in Bengal is 1913, in which well orer a million people 7 ·are believed to have died. To prevent such a thing happening again, the International Emergency Food Council 25 set up after the war 10 allocate Scarce foods according to recd and to prevent world prices from being driven up by competition for the limited supplies available. The meagere allocations of rice were supplemented by large shipmeats of whear from the United States, Australia and Canada, and special measures were taken by the countries of South and South-East Asia themselves to raise food output. As a result widespread starvation as averted, SUPPORT FROM OUTSIDE The countries of South and South-East Asia found after the war that they wanted to import very much more from abroad than they were able to pay for out of their own exports. Quite apart from emergency supplies of food and clothing, they were in greater aced than ever of machinery, vehicles, iron and steel, and building materials with which to repair the ravages of War and rebuild their own production. To help pay for these extra imports, India, Pakistan and Ceylon Kerc abic to draw upon the sterling funds which they had piled up ia London during the war. Altogether they drew about £340 million in the four years 1946-9, and this enabled them to import ont-quarter more goods during the period than they exported. £340 million as much less than these countries would have used, but cvca so it was a heavy burden on Britain, who in thus repaying part of her partimc debts had to supply goods out of her own limited production. She has been buiped to do this by the generous gifts and loans which she herself bus received since the war from the United States, Canada, Australia and New Zealand. There are a number of other ways in which the countries of South and South-East Asia have received outside support since the war. Britain, for instance, has made loans and graats to Malayz and British Bomco up to a foul of 095 million, of which ball will have been spent by the end of March 1951. India has secured foreign cxchange from the International Monetary Fund and has received loans for specific purposes from the International Bank. Britain, Australia, India, Pakistan and Ceylon have joined in making a loan of £6 million to Burma, India has made a loan to Thailand Help has also come from the United Nations, the United States and other countries outside the arc3. RECOVERY GETS UNDER WAY For the most part, good progress had been made in restoring production in South and South-East Asia from the low levels to which it fell at the end of the war. This is shown by the table on the pare opposite. The degree of recorcry has naturally varied from country to country, Rice production has been fully restored in Thailand, but nos in Burtna or Indo-Chini-and the consequear fall in exports from these last two countries kas reduced the supplies available in other parts of South and South-East ·PRODUCTION IN SOUTH AND SOUTH-EAST ASIA (thousand 100) 1946 64,987 2814 5,789 . ucz (paddy) OILS AND FATS SCAUX in COTTON .. XLLBER TL MITROLEUM (crude) Pre-421 70,990 3,596 6,23 1,831 3,132 86 118 7,960 19.9 70,117 3,174 6,200 1,340 606 1,397 94 9,034 759 754 15 *1947 Asia. Output of sugar is higher thsa before the war ia lodia and Pakistan, but there has been a sharp fall in Indonesia, which used to be the torld's second largest ciporter. Jute and cottoo are mainly prod Iced in India and Pakistan, and both countries have found it necessary to reduce the area under cultivation in order to make room for food crops ; steps are now being taken to restore production. Production of tin has staged a remarkable recovery in Alalaya and Indonesia, but in Burma and Thailand it remains very low. Oil production is nearly back to the pre-war level in Indonesia; in Brunci it has been greatly expanded since the war and is now more than five times as great as in 1938. BUT THE REAL TASK HAS HARDLY BEGUN Aluch has thus beca done in the last five years to restore the war-shattered conomics of South and South-East Asia, and be immediate post-war crisis has been surmounted. But the real task of development has bardly gree begun. For the problem before these countries is very different from that which testera Europe faced at the end of the war. Most of the European countries were already highly developed before the war, and it *35 mainly a question of restoring what the war bad disrupted. The cconomics of South and South-East Asia on the other hand have never been highly developed, and a new structure has to be built almost from the ground up, so that the great wealth which they possess can be tapped for their benefit and that of the whole world. A stage has now been reached at which it is possible to plan thead. The needs are great, time is short. The longer the necessary action is postponed, the greater the problem becomes. THE POPULATION IS GROWING FAST All over the area the populuons are growing rapidly growing by about 2.000 every day. One chůd in every three bors into the world today is a child of South and South-East Asia. At this rate the present population 9

·INDIA
FERTILISER
Wheat yield
TRACTORS
AREA UNDER CULTIVATION
per acre
onc half of
that in U.S.A.
Cotton yield
per acrc
one fifth of
that in U.S.A.
U.S.A.
CULTIVATION
UNDER
AREA
WHAT MACHINES CAN DO
The area under cultivation in the United States is only about anc-sixth larger
than in India, yet the United States uses over sixty emes as much fertiliser
more than 13,000,000 tons a year, compared with only 200,000 in India The
United States has nearly 24 million tractors, in india there are only about 10,000.
}

·of 570 million will have increased to 720 million by 1970. That will mean an exưa 150 million people to feed in less than twenty years, the equivalent of the whole population of the United States. Onc reason for this startling increase is the lowering of the death-rate through improvements in public health. But in the long run experience suggests that a gencral improvement in living standards exercises a steadying influence on the rise in population. In some countries in the area the birth-rate of the middle classes is already declining; for instance, it has been found in East Bengal that the size of families tends to be smaller on holdings of ten acres than on those of five. It is clear that a great expansion of agricultural and industrial production will be needed to provide for the increase in population, even without any improvement in the standard of living. There is evidence to show that output per head has actually declined over the past ten years; this trend must be reversed. PRODUCTIVITY MUST BE INCREASED In every country in the area over half the population depend on the land for their livelihood ; in some the proportion is as high as 80 per cent. Agricultural productivity, however, is desperately low. Not only does each acre under cultivation have to support many times more people than in Western countries, but yields per acre are much lower. In India, for instance, the average yield of wheat is little over one-half what it is in the United Sures, the yield of cotton not much more than one-fifth. What is the reason for this great disparity? It may be explained in part by differences in soi fertility, and by the irregulanty of the rainfall which complicates the task of cultivation in parts of South and South-East Asia. But there is more to it than that, The are under cultivation in the United States is only about one-sixth larger than in India, yet the United States uses over sixty times as much fertilisermore than 13,000,000 tons a year, compared with only about 200,000 tons in India. The United States has nearly 2,500,000 tractors ; in India there are only about 10,000. Here surely is the real answer to our question. It is the application of molemn tools and techniques which enables the farm worker in the United Sutes to produce so much more per acre than the peasant in South and South-East Asia Power and machines are the key to plenty on the landfactories to make implements and fertilisers; machines to till the soil; cims to provide water for irrigation and to control the floods. The peoples of South and Sounh-East Asia must have more of all these things if they art in win their fight against poverty. They must also develop their Industnes, parucularly their cottage industries, so that a better balance may be achieved between industry and agriculture, and so that productive employment can be found for some of the many millions who are at present undct-employed on the land.

·PRODUCTION SINCE THE WAR ALL FIGURES IN THOUSANDS OF TONS RICE OILS & FATS PRE-WAR 70,990 1946 64,987 1949 70,117 PRE-WAS 3,596 1947 2,844 1949 3,174 SUGAR JUTE H 1949 PRE-WAR 6,223 5,789 6,200 PAE-WAR 1,831 1946 1,427 1949 1,340 COTTON RUBBER (T) PRE-WAR 1,132 1946 759 1947 606 OREWAR 864 1948 754 1,397 12 ·Crni ne na Colon Small fields and lack of modern tools help to explain bo pro ikunty the land the basic problem of South and South-East Asia ·Populations are growing faster than food supplies. This Chinese family in Malaya lives mainly on rice, which is the staplc food of most of the people in the area Workers taking a midday meal in the wheat-ficids of Pakistan Alachines are few, fertilisers scarce. As a result, crop yields are far lower thin in testcen countries ·Burmese peasants in the rice-fields. The drop io rice exports from Burma has meant less to eat in India, where the ration in many towns is now only 12 ounces a day Taking a loud of cotton to market. The great majority of the people of Tartu live la plages, to the fullock-cart is suli the usual means of transport ·Populations are growing faster than food supplies. This Chinese family in Alalayz lives mainly on rice, which is the staple food of most of the people in the area Workers taking a midday meal in the sheat-fields of Pakistan. Alachines are few, fertilisers scarce. As a result, crop yields are far lower than in 'estern countries ·Burmese peasants in the rice-fields. The drop in rice exports from Burma has meant less to eat in India, where the ration in many towns is now only 12 ounces a day Taking a load of conton to market. The great majority of the people of Indu Live u villages, and the bullock-cart is still the usual means of transport ·Plucking tea in Ceylon. Tea exports have helped to bring wealth to the Island, and people are better off than in most parts of South and South-East Asis Terraced fields in Indonesia. In some countries in the area as many as 8 prople out of every 10 derand on the land for a linag, and new industries are needet ·The Approach Poverty and hardship are no new problemos in South and South-East Asia, but during the past five years there has been a great awakening among she peoples of the area. Independent Goremmeats bare come into being, supported by decocratic institutions and resolved to work for the future welfare of their countries. These changes have aroused cow hopes and cxpectations io the minds of the peoples, and the Governments have made a fresh approach to the whole problem of raising living standards through economic development. A CASE FOR CO-OPERATION At the same time, all over the free world, people bave come increasingly to realise bow vitally important it is that a really determined effort should be made to tackle this problem op a basis of international co-operation. It is important first and foremost because the well-being of onc-quarter of markind is directly affected. It is important too because stability in South and South-East Asia is essential to the cause of freedom. If these countries failed to maintain and strengthen their free institutions, it would be a grave blow to the chances of a peaceful and prosperous world. Furthermore, the area plays a big part in world trade. Before the war it provided almost all the world's exports of jute and rubber, more than three-quarters of the tra, almost two-thirds the tin, and one-third of the oils and fats. These key products bare for generations flowed into the great trade routes, belping to sustain the industries of Europe and America. Ia exchange the countries of South and South-East Asia obtain from the West the industrial products which they so badly need textiles, vehicles, machines, iron and steel, WORK WHICH GOVERNMENTS MUST UNDERTAKE It is dear that the whole world stands to gain itmensely from the further de clopment of the natural resources of the countries of South and South-East Asia and from the stonth of new ksomledge and skills among their peoples. - 13 ·Plucking tca in Ceylon. Tca cxports have helped to bring ucalth to the Island, and people are better off than in most parts of South and South-East Asia KN HU Terraced fields in Indonesia. In some countnes in the area as many as 8 prople out of cery 10 depend on the land for living, and new indutrics are needed ·THE COLOMBO PLAN It was with all bese considerations in mind that Ministers of the Comunonwealth countries, meeting at Colombo is January 1950, agreed that special attention was needed for the problems of South and South-East Asia and that these problems would not be solved by the countries of the area alone. The Comngontealth Governments took the lead because of their special ties with the area and because three-quarters of the people in the area live in Commonwealth countries. Later on it was hoped to bring in the other countries in the area and invite them to join od equal teres in any plan that might be worked out. Colombo was the beginning of a great Dew venture in democratic planning. Ont of the sesults which has already taken shape is a scheme for technical co-operation in South and Souch-East Asia, Aa acute shortage of trained meu is one of the things which is doing sost to hold up economic progress in the area. There are not enough cagiocers, there are bot enough agricdtural experts, there are not cnough doctors, there are pot enough chemists. So the Commonwealth Governments decided to start a scheine at once under which the countries in the area would do what they could to assist one another in providing technicians and training facilities and Britain, Canada, Australia and New Zealand all promised to do their best to help. It has been agreed that up to £8 million should be spent on this scheme over the next three years, and details have already been worked out. - REAL HOPE OF PROGRESS Alcanwhile the main job of drawing up a realistic plan of development for South and South-East Asia has gone ahead. Further meetings took place in Sydney in Alay and in London in September, and betweea these two macetings each of the Corpion health countries in the area prepared a programme of cconomic development for the six years beginning in July 1951. Non-Commonwealth countries in the area were invited to join in and submit programmes. Thailand, Cambodia, Laos and Viet-Nam all set delegates to London for a meeting with the Commonwealth countries at the end of the Seprember conference; the Ambassadors of Burma and Indonesia were also present as observers. The only programmes considered in Seprembet mere, however, those of India, Pakistan, Ceylon, the Federation of Malaya, Singapore, North Borneo and Sarawak. The programmes show bat determined efforts the Governments of these countries are making to develop their resources and to provide a better standard of living for their peoples. These efforts cannot lead at once to spectacular results. It is a quesúoa rather at this stage of laying sound foundations for a steady but gradual improvement which must be spread OCT HLOY stars. The undertakiog nene the less offers real tope of economic progress and make a warning point is the long history of South and South-East Asia. 15 ·past both Some such development has, of course, beca undertaken in the by Gorernments and by prirate enterprisemmusually with the help of money put up by investors in Western Europe, particularly in Britain. Estates were planted with rubber and tea; tin-mines were opened up ; modern railways and irrigation works were built; schools, training colleges and hospitals appeared in the area. But all this has done no more than scratch the surface. Development on a much bigger scale is needed even to maintain prescot living standards in South and South-East Asia, let alone improre than Consider, for instance, some of the figures in the following tabic. They show just how far the countries of the area are behind Britain and the United States in the provision of machines and equipment and the power to drive them. LEVELS OF ECONOMIC DEVELOPMENT IN 1949 Unit per thousand populations INDIA PARIS- TAN UNITED UNITED CEYLOS MALAYA KINGDOM STATES Electricity Production thousand Vh 13 1.9 96 1,033 2,296 cons 80 18 28 85 3,884 3,473 Coal Consumption Steel Consumption Cement Consumption 3.8 13 6 36 194 361 7.2 3-6 19 25 148 229 Carrying Capacity of Railway Wagoas 10 8-8 4.5 13 276 33 556 All-Weather Roads miles 0-32 0.87 0.93 2-2 Telephones Ros, 0.37 0:21 22 7.7 98 261 Nore: Afost of the figures for the United States refer to 1943. The first stages of development are the most difficult and the most costs. Power-stations and irrigation works, roads, railways end ports are sery expensive things, and they take a long time to complete. In recent times, morcover, the private investor has usually been reluctant to put his money into providing basic services of this kind because they take so long to bring a return. These are reasons why the ground-work of economic development in South and South-East Asia has got to be undertaken by Governments, and the Gortraments in the arca are shouldering the main responsibility for tackling this probleme hough there are many and growing opportunities for prirate catcrprise as well.

·THE COLOMBO PLAN It was with all these considerations in mind that Ministers of the Commonwealth countries, mecting at Colombo in January 1950, agreed that special attention was needed for the problems of South and South-East Asia and that these problems would pot be solved by the countries of the area alone. The Commonwealth Governments took the lead because of their special ties with the area and because three-quarters of the people in the asta live in Commonwtalib purtries. Later on it was hoped to bring in the other countries in the area and invite them to join on equal tertos is any plan that might be worked out Colombo was the beginning of a great Dew venture in democratic planning, One of the results which has already taken shape is a scheme for technical co-operation in South and South-East Asia. An acute shortage of trained mca is one of the things which is doing sost hold up economic progress in the area. There are not cnough engineers, there are not cnough agricultural experts, there are not cnough doctors, there are not enough chemists. So the Commonwealth Governments decided to start a scaccae at once under which the countries in the area would do what they could to assist onc another in providing technicians 2ed training facilities and Britain, Canada, Australia and New Zealand all promised to do their best to belp. It has boca agreed that up to £8 million should be spent on this scheme orer the next three years, and details have already been worked out. REAL HOPE OF PROGRESS Meszwhile the main job of drawing up a realistic plan of development for South and South-East Asia has gone ahead. Further meetings took place in Sydacy in May and in London in September, and between these Two meetings each of the Commonwealth countries in the area prepared a programme of economic development for the six years begianing in July 1951. Non-Commonwealth wountries in the area were invited to join in and submit programmes. Thailand, Cambodia, Laos and Viet-Nam all sonr delegates to Londoa for a meeting with the Commonwealth countries at the end of the September conference; the Ambassadors of Burma and Indonesia were also present as observers. The only programmes considered in September were, bowever, those of India, Pakistan, Ceylon, the Federation of Malaya, Singapore, North Bornto and Sarawak The programmes show what determined efforts the Goveroments of these countries are making to develop their resources and to provide a better standard of living for their peoples. These efforts annor lead at opce to spectacular results. It is a question rather at this stage of laying sound foundations for a steady but gradual improvement which must be spread over many years. The undertaking none the less offers real hope of economic progress and marks a turning point is the long history of South and South-East Asia. 15 ·The Plan One of the most striking things about the programmes prepared by the Commonwealth Governments in the area is the realistic approach adopted; daey are in fact largely made up of projects for which detailed plans bare already been worked out. At the same cime there can be no doubt that development is planned on a big scale. This is shown by the amount of money the Governments are proposiag to spend over the next six years, and by some of the results they expect to achieve. TOTAL COST, 1951-57 : £1,868 MILLION More than two-thirds of this is for Ladia, rather over one-seventh for Pakistan. The remainder is divided about equally between Coylon and the British-administered territories in the area (Malaya and Briosh Borco). The purposes on which this money will be spent arc sbown in the chare od pages 36 and 37. Of the total, 34 per cent is for transport and communications; 32 per cent for agriculture (including river valley develop ment schemes); 18 per cent for housing, health and education; 10 per cent for industry and mining (excluding coal); and 6 per cent for fuel and power. SOME OF THE RESULTS EXPECTED An increase of 13 million acres (31 per cent) in land under cultivation. An increase of 13 million acros (17 per cent) ia land under irrigation. An increase of 6 million tons (10 per cent) in food-grain production. An increase of 1.1 million kWs (67 per cent) in electric geacracing capacity. HOW THE JOB IS BEING TACKLED The main emphasis in all the programmes (except for Singapore) is on agricultural rather than oa industrial development, but the two ofion proceed hand in hand. La India, Pakistan and Ceylon, for iastance, the generation of hydro-electric power is being combined with irrigation works and food 16 ·control in giant projects for developing whole river Falleys on the lines of the Tennessee Valley scheme in the United States. One such project alons, on the River Sulej in India, is expected to cost Rs 757 million Hell aper £50 million. Rosds and railtraps too, which are a big item in all the programmes, are needed both by agriculture and industry. Naturally caough, the differeat countries in the area have approached the problem of development in different ways because their needs are differeat. Pakistan, for instance, has at present practically co industry at all, and her programime therefore puts more emphasis than the others og industrial development; this accounts for about one-fifth of the expenditure allowed for in het programıne, compared with an average of only one-tenth for all the programmes combined. Then again Ceylon and Malaya are at present exceptionally dependent on the export of a few products like rubber, tin, tea and coconuts, and they are aiming at broadening their coobomies by opening up new areas for food production. Singapore, as an international port mit a large and growing population, is specially concerned with problems of health, education and bousing. A good deal of new developroent was under way in the area at the time of the Colombo conference, and the programmes of the Commonwealth countries include many projects on which work has already started. A considerable specding-up in the present rate of derclopment is now proposed. THE COUNTRIES ARE DOING ALL THEY CAN The Governments concerned are doing all they can to find within their own countries the money needed to pay for this development. Other forms of government expenditure are being cut down. Taxes are already very bögh and are now to be increased, although were is not much scope for getting extra revenue by this mesas. Individual thrift is being encouraged, especially in India, by national savings campaigns. In all these ways current consumption of goods and services is being lunited in order that more can be set aside for constructing irrigation Forks, building Bew rilways, power-stations and factories, and so on. BUT HELP IS NEEDED FROM OUTSIDE The plain fact of the matter is, bokeyer, that the countries of South and South-East Asia are too poor to provide out of their own resources for even the barc minimuts of development aceded to prevent living standards from failug further. No one could say that the present programmes are OXFT-ambitious. Indiz, for instance, has included only half the projects for which detailed plans have been prepared, and Pakistan's programme is kumired to about 60 per cent of what the Government originally hoped to chicc. Ese so, it is clear that tbe programmes cannot be carried out as planned unless some help can be obtained from ourside the area. The countries of Souh and South-East Asia Reed more trained men. To begies with, something over a thousand technical experts of one kind and 13 ·The Plan One of the most striking things about the programmes prepared by the Commonwealth Governments in the area is the realistic approach adopred; they are in fact largely made up of projects for which detailed plans hare already been worked out. At the same time there can be ao doubt that development is planned on a big scale. This is shown by the amount of money the Governments are proposing to spend over the next six years, and by somc of the results they expect to achieve. TOTAL COST, 1951-57: £1,868 MILLION More than two-thirds of this is for India, rather over one-serenth for Pakistan. The remainder is divided about equally between Ceylon and the British-administered territories in the area (Alalaya and British Borneo). The purposes on which this money will be spent are shown in the chart op pages 36 and 37. Of the total, 34 per cent is for transport and communications; 32 per ceot for agriculture (including river valley development schemes); 18 per cent for housing, health and education; 10 FCT CCII for industry and mining (excluding coal); and 6 per cent for fuel and portes, SOME OF THE RESULTS EXPECTED An increase of 13 million acres (31 per cent) ia land under cultivation. An increase of 13 million acres (17 per cent) in land under irrigation. An increase of 6 million tons (10 per cent) in food-grain production. An increase of 1.1 million kW (67 per cent) in clectric generating capacity. HOW THE JOB IS BEING TACKLED The main emphasis in all the programmes (except for Singapore) is on agricultural rather than on industrial development, but the two often proceed hand in hand. In India, Pakistan and Ceylon, for inspance, the generation of hydro-electric power is being combined with irrigation works and food 16 ·INDIA PRODUCTS Important Industrial Centres MILES 1000 100 200 300 NEW DELHI TEA TEA QIL TEA COTTOR OIL SEEDS SUGAR SUGAR INDIA AHMEDABAD MICA TATANAGAR FRON ONE JUTE CAL OIL SEEDS MANGANESE MANGANESE COTTON COTTON COAL COAL JUTE 204 COAL UTT) BOMBAY COTTON ARABIAN SEA BAY OF MICA OIL SEEDS TOBACCO BENGAL *** COTTON MADRAS 10 TEA Qaese 2 10'N ECEYLON 76. INDIAN OCEAN 0 80 90°E about all. The remaining 2 workers out of the 10 are employed in smaller industries, distribution and public services. India produces over 30 million tons of coal a year, but practically all of this is mined in a single area of Bihar and West Bengal, and it is very expensive to transport it over long distances to other parts of the country. There is relatively little oil in India. On the other hand there are many great nisers which present enormous opportunities for developing hydroclectric power. The flow of water in these rivers varies greatly from one ume of the year to another, and if this could be regulated, it would prevent seasonal flooding and soil erosion which drain away so much of the natural wealth of the country. HARNESSING GREAT RIVERS It is not surprising therefore that the Indian Government attach so much importance to schemes of nver Falley derelopment, sin ·another particularly cagineers are known to be wanted for more on specific projects included in the programmes of the Commonwealth countries. Others will certainly be syanted by other countries in the area. The countries of South and South-East Asia also need to import more goods from abroad during the next six years than they can hope to pay for out of their own exports. They will want not merely machinery, equipment, vehicles, ima and steel, and other capital goods used directly for derelopment. They will also want consumer goods, including food and dothing, for the workers on the job. These workers are too poor so save and they must have something on which to spend their new wages. So unless there are extra goods available, prices will be driven up, and there will be all the chaos of runaway inflation, with the discontent and unrest that always go with in More will be said later about these two needsmthe need for trained me and the need for imports. Unless these needs can somehow be moct, the rate of development must inevitably be slowed down. Tackling the Job The best way of seeing how development is going to work our in practice is to take a look at the programmes of the individual Commonwealth countries. They have all been framed on a realistic basis, and a good deal of the work is already in hand. Let us take ladia first. INDIA THE COUNTRY'S RESOURCES India has a population of nearly 350 million, and 7 workers out of every 10 depend on the land for their livelihood. There are a feir big industries, but these provide employment for only 1 trorker in 10. One of the most important is the cotton textile industry, which is centred mainly in the It'est at Bombay and Ahmedabad. Then there are the jute mills of Calcutta, the sugir factories in the towns of the Ganges Valley, and the great iroa and steel works at Tatanagar, onc of the largest in the world. The manufacture of cement and marches is also carried out on a fairly large scale, but that is 18 ·Alost of the industry in South and South-East Asia is on a small scale. It is often Kociated with local agriculture, as is this coconut oil plant in North Borneo ·sue anaxa NANGAL PROIECT NEW DELHI KOS: OCT CHANTAL POIECT KANDCA DARODAR PROIECT Mor SINDRIADO PRON GY TATANAGAR BHAVNAGAR) 20° TAMIR tatt PROXC7' HAHANAI DECY BOMBAY INDIA ARABIAN BAY OF SEA YUCA MADCA PAQUECT BENGAL more CMADRAS INDIA BANGALORE NEW DEVELOPMENTS 10°N COCHINE RIVER VALLEY SCHEMES KO ADILCY PORT DEVELOPMENT OTHER MAJOR WORKS MILES 100 0 100 200 300 700 € 800 are already in hand. In the Damodar Valley in Bihar the river is being dammed in cight places, and hydro-electric plants are being built with a total capacity of 240,000 kilowatts; the power generated here will belp to open up the richest mineral basin in India. In addition the dams will provide water for a network of irrigation canals. The total cost of the scheme is estimated at Rs 500 million (C37} million); work on the first dam was started in 1948 and will be completed by 1953. Then there is the project already mentioned for hamessing the River Sutlej, which will open up barren land for the resertlement of refugees and provide power for New Delhi and other cities in the North ; one of the dams to be built under this scheme will be almost as large as the famous Boulder Dam in the United States. A third project provides for the construction of a dam 150 feet high and 15,000 feet long across the liahanadi River in the Eastern part of the country, and there will also be two hydro-electric plants srith a combined capacity of 32,100 kilowatts. Altogether these three river valley schemes. 20 ·A rubber factory in Ceylon. Nearly all the world's natural rubber is produced in Sourb and South-East Asia; thousands of workers are employed in processing it Pressing 12* jute for packing into bales. This is one of several presses recently set up 1a East Pakistan, where those than four-fifths of all the world's jutt is grown ·India has a few large industries, but they provide employment for only one worker out of every ten. This picture shows operatives at work in a Bombay cotton mill This iron and steel plant at Tatanagar in India, now to be extended, is one of the largest in the world. Yet India uses only 1 ton of steel for every 7 used in Britain ·Pakistan's Prime Alinister opens a new lexuſe mill in Karachi. Special emphasis is placed in Pakistan's programine on the development of jure and cotton processing Building reinforced concrete silo, 90 feet high and mile long, for India's nere festleer plant #1 Sind The siło will be air-tondicioned to control humidity

·Syntywy w
TON
Consignment of tin ingots at a Malayan pon being checked for shipment to the
United States. About half the world's tin is produced in Malaya and Indonesis

·Repairing a road is Ceylon Over £600 million is to be spent in the next six years on transport and communications in Commonwealth countries in the area Inuiu taas seven unes as many people as Britain, yet produces less than one-tenth as much clectric pores Geperating capsaty is to be raised by one-half by 1957 ·Extensive war damage had to be made good in many parts of South and South-East Asia. This picture shows restoration work on a railway bridge in Malam ·L'ore should bring another 6 million acres of det land under irrigation by 1957 and raise India's electricity generating capacity by some 700,000 kilowatts (total capacity at present is about 1,400,000 kilowatts). BIG INCREASES IN PRODUCTION EXPECTED la addidos to the river vallcy schenes India las plans for a large number of local irrigation works. Peasants are being instructed in modem methods of cultivation, better seeds and fertilisers are being distributed, 14 new agricultural research and training institutes are being set up. By these and mber means the Indian Government hope to achieve big increases during the next six years in production of some of the main crops. INDIA : EXPECTED PRODUCTION INCREASES 1950 $957 1950 1957 1950. 1957 1950 1951 2 FOODGRAINS up by 3 million tons COTTON up by 195.000 tons JUTE up by 375.000 tons OIL SEEDS up by 1 million tons This extra production should make lodia less dependent os imports of food, and at the same time it should belp to increase exports both of the 129 materials and manufactured products. PLANS FOR TRANSPORT AND INDUSTRY Agriculture, including the river valle projects, accounts for a third of all la monty pluch India is proposing to spend under her development programme; transport and communications scount for starly another chan fifths. Thanty-six dow railway lines are to be constructed į Large sumns 21 ·Survey work for the Konar dam in India's Damodar Valley-part of a Rs 500 million scheme combining irrigation, flood control and hydro-electric power Early stages of the work on the Gal Oya river valley schemcin Ceylon. Giant projects like this take many years to complete and are usually undertaken by Governments ·PAKISTAN PRODUCTS MILES x 100 150 20 RAWALPINDI TONTON LAHORE .QUETTA coal MULTAN CO4L COTTO SYLHETO st& TEN HYDERAS KARACH cotton ARABIAN SEA CHITTAGONG, B OF BENGAL 929 PAKISTAN DEVELOPMENT PROJECTS MAJOR 18A/GATION SCHEMES HYDRO-ELECTRIC SCHEMES bo PORT DEVELOPMENT OTHER MAJOR WORKS 156 56 TO 199 200 KARACHEL ASANIE KA. 36 CHITTAGONG S ROF BENGAL 92 KARNATUL ·are to be spent on new locomotives and rolling-stock; a modern factory for making locomotives and boilers is being built near Calcutta. There will be a number of new trunk roads, and the existing ones are to be improved. An entirely new port is being built at Kandla on the West Coast, the ncighbouring harbours of Sika and Bhavnagar are being developed, and the ports of Madrs, Bombay and Cochin are to be modernised. Industry's share of the development programme is much smaller-about onc-tenth. Here one of the most important tasks is to increase production of iron and steci and engineering goods. Existiag icon and steel works at Tatanagar and Calcutta are being extended, and there are plans for an entirely new integrated steel plant to be built in Madyba Pradesh (the Central Provinces). Work has started on a cement plant at Sindri in Bihar and on factories for the manufacture of aircraft (at Bangalore), machine tools, aluminium and various other products. India's first fertiliser factory was completed is 1945 in Travancore. Now a second, and much larger one, is nearly finished at Sindri; it will be capable of ruming our 350,000 tons of fertiliser a year. HOW LIVING CONDITIONS WILL BE AFFECTED What difference will the programme make to the lives of ordinary people in India? At present the ration of cereals in many of the towns is limited 10 12 ounces a day. By 1957, as a result of the programone, it is hoped to raise this to 16 ounces. There should also be an increase in consumption of cotton cloth from an average of 10 yards a year for ezury person to an orttage of 15 yards. At the same time many millions will benefit directly from the money which is being speat on social services under the programme. These account for pearly one-sixth of all expenditure on development, and high priority is being given to schools and to the rescrilement and rehabilitation of displaced persons. Smaller sums have been allocated to building hospitals and dispensaries, new housing and slum clearancc. PAKISTAN THE COUNTRY'S RESOURCES There are 82 million people in Pakistan. The country is divided into Eastern and Western zoncs which are separated by 1,000 miles of Indian Territory. Eight persons out of every ten depend upon agriculture for a living, and the most important products are rice, wheat, sugar, juts, oil-seats, corton and tobacco. When Pakistan smrted its existence as a separate country in 1947, it 1125 faced with very grave problems. There were seven million refugees to be mken care of, while large numbers of traders and professional men had left the country. Ercrywhere businesses were shut down, banking operations suspended and markets closed. Not only had a new administration to be set up, but the whole life of the nation had to be organised afresh.

·PAKISTAN PRODUCTS KLES $x 50 100 152 200 toal PESHAWAR PRAWALPINOL COTON LAHORE .QUETA CORT MULTAN COTTON COAL SYLHET TE TEA DAC HYDEWASADY KARACHILE COTTON IUT 1 ARABIAN SEA CHITTAGONG, B OF BENGAL PAKISTAN DEVELOPMENT PROJECTS Mits 0750X 19 m MAJOR IRRIGATION SCHEMES HYDRO-ELECTRIC SCHEMES the PO&T DEVELOPMENT OTHER MAJOR WORKS CHETTACO KARNAFUU 88 A OF BENGAL 92 12 ·There is very little industry in Pakistan, and what there is has mainly been set up in the last feio years. In 1947 there were practically do testile factories, and no jute mills at all-in spite of the fact that the country as responsible for over four-fifths of the world's jute production. Since thes four new corton mills hare been completed by private enterprise, and a further twelve mills will shortly be is operation. Several jute presses have been imported into East Pakistan. A cigarette factory has been set up in Karachi, a large new sugar factory has been built and a number of other industries have been started, while some older ones have been developed. Pakistan at present produces only about 324,000 tons of coal a year, and there is very little oil in the country. On the other band there are great resources of hydro-clectric power so far largely untapped ; present capacity is only 9,600 kilowatts, against a potential estimated at 5 or 6 million kilowatts, AIMS OF DEVELOPMENT The Government of Pakistan recognise that agriculture must continue lo be the main occupation of the people, and the first objecove of their development programme is to increase production of food and other important crops. Agriculture gets the largest single share of the expenditure proposed about one-third of the total. At the same time large sums are being spent on setting up new industries and providing the power to run then. PAKISTAN : HOW THE MONEY WILL BE SPENT AGRICULTURE 32% TRANSPORT & COMMUNICATIONS 20% FUEL & POWER 18% INDUSTRY & MINING 19% SOCIAL SERVICES 11% GETTING MORE OUT OF THE LAND Roughly 100 miles from the mouth of the Indus a great barrage is being built across the river. Therс will bc 44 spans of 60 feet each, and the water will be fed off to irrigate an area of nearly 3 million acres. Over 500 miles away, in the West Punjab, another 700,000 acres are to be imgated by means of 1,800 rube-tells, which will be worked by electricity generated from a new hydro-electric plant at Rasul; this same project will also help in draining the matcr auay from large areas nearby which are at present waterlogged. 24 ·These are the two largest schemes in Pakistan's programme. There are also masy smaller odes for improving methods of cultivation, providing better seeds and fertilisers, and making more use of machines on the land. The objective is a rise of one-third in agricultural output by 1957, with particularly large increases in food crops produced for sale. Production of 07-seeds should be increased by 220 per cent, fruits by 90 per cent, sugar-cine by 70 per cent, regcrables by 68 per ceat, otton by 27 per cent, cereals and pulses by 17 per cent, aod jute by 10 per cent. NEW INDUSTRIES AND POWER TO RUN THEM The main aphasis in the programme is placed on jute and cotton processing and the manufacture of paper ; Rs 390 millios (over $40 million) is to be speat on devcloping these industries alone. Six jute milis are to be built, with an annual output of 130,000 tons ; this should be coough to supply the home market and leave something over for esport. Present out of cotion goods, which is only 100 million yards a year, is to de raised 10 450 million jards in the near future and to 1,350 million yards by 1957. By these means consumption can be nearly doubled, while imports will be reduced to one-quarter of their present level. INCREASED SUPPLY OF COTTON GOODS 1950 9 YARDS OF CLOTH PER PERSON 1957 17 YARDS OF CLOTH PER PERSON SHADING SHOWS PROPORTION IMPORTED The programme provides for the building of a paper roll near Chittagong which will use local raw materials and produce 30,000 tons a year. In sddsboa certa other smaller industries it be developed, among them sumas, posters, glass, chemicals and fertilisers, Power for these industries will come from twelve new stations, including 240 big hydro-clertc plants at Warsak and Karpafulls which are included in nrer vacy development schemes. la at Rs 450 million (nearly £50 mullion) is to be spent on clectric power over the six years, and the country's rolul generating capacity should be increased from 70,000 kilowars to about 325,000. Rs 20 million, of over £2 million, trill also be spent on raising al production from the present low lesel of 324,000 tons a year to 3 miilion togs a year 25 ·BUILDING A BIGGER PORT AT CHITTAGONG Biggest single project in transport is the extension of the port of Chittagong in East Pakistan, which is necessary to increase the flow of jute exports. At the time of partition the port could handle only 600,000 tons of goods a year. Capacity has now been raised to 1,800,000 tons, and a further increase to 4,000,000 tons is planned. A new dry dock is to be built at Karachi. On the railways large sums are to be spent on repairing and replacing wom-out engines and rolling-stock. Telephone and telegraph services are being extended. EDUCATION AND WELFARE In expenditure on social services high priority is being given to education Plans for new buildings include over 4,450 primary schools, 1,456 middle schools, 400 high schools, 15 teachers' training schools and 2 training colleges. Provision is also made in the programme for setting up a number of technical institutes and research laboratories and for giving scholarships for training abroad in scientific and technical subjects. Health and medical services are to be extended by the provision of 600 new dispensaries in the villages and a further 600 mobile dispepsaries. In addition 120 new hospitals are to be built. Housing plans include the development of new residential arcas and townships and the building of prefabricated houses for refugees. CEYLON BROADENING THE ECONOMY Ceylon's population, now 74 million, is increasing at the rate of 200,000 a year, and more food is the country's first oced. At present two-thirds of the rice catea in the Island has to be imported from abroad. The main reason why so little food is grown in the Island is that two-thirds of all the land under cultivation is taken up with the production of three main export crops--tea, rubber and coconut. Through specialising in these crops Ceylon has been able to enjoy a higher standard of living than most other countries in South and South-East Asia, but it is very dangerous for any country to be so dependent on the export of a small number of products-particularly when the prices these products fetch in world markets are continually going up and down. The main objective of Ceylon's development programme is therefore to broaden her economy by increasing production of food for local consumption and by providing more employment in iadustry. PLANS FOR AGRICULTURE Land development projects are much the most important part of Ceylon's programme, accounting for orcr onc-third of toul expedditurc.

·CEYLON: HOW THE MONEY WILL BE SPENT AGRICULTURE 37% TAANSPORT & COMMUNICATIONS 22% POWER & INDUSTAY 14% HOUSING, HEALTH & EDUCATION 27% Two-thirds of the population et present live in the set zone in the West and South-West of the Island, and steps are now being taken to open up the more thinly populated dry zone in the East and North Centre. This should canble the acreage under food crops to be increased by at least one-fifth during the six years, with a resulting rise in the production of rice from 187,000 fons in 1949-50 to over 250,000 tors in 1957. Aluch work is invoked in clearing virgin jungle and providing irrigatios. The biggest project that has been started is the Gal Oya river valley develop- Frent scheme in the Eastern Province which is expected to cost in all about Rs 400 millon (£30 million); it will not be completed until 1962. A big dam Füll score water for irrigating 300,000 acres at present under jungle and for improving the irrigation of 30,000 acres already under cultivation; It is hoped that 21,000 peasant boldings will be provided in the ner arca. A similar project on the Walawc Ganga River, which has not yet been started, will irrigate 40,000 acres of new land, besides ensuring a regular supply of water to 13,000 acres of existing paddy-fields. The dam will help to prevent foods in the valley and will enable 10,000 kilowarts of hydroelectric power to be generated on the spot, DEVELOPING THE PORT AT COLOMBO The Ceylon Golcrament are giving high prionty in their programme to a scheme for descloping the great international port et Colombo. The work will be carried our in four stages, and altogether new berths for more ban thirty ships will be provided alongside the wharves; these will be quipped with modern equipment for the rapid handling of cargo. The outer harbour is to be enlarged so that more shops an anchor theme. NEW INDUSTRIES There ariery line industry in the Island as present, bus plans are afoot for a big dew fertiliser plant apable of producing 80,000 tons of ammonium iufshare and 35,000 to 45,000 tons of superphosphate a seat. The programme also includes a ne* factors for she traction of aconut oil and secoad for the manufacture of caustic soda from salt produced locally. 27 ·12 20 CEYLON NEW CEMENT FACTORY} RESOURCES AND NEW DEVELOPMENTS 10 JAFFNA coconuts BOUNDARY OF WET ZONE MILES 3 23 RICE TANKS SEING RESTORED COCONUTS COCONUTS TRINCOMALEE GULF OF MANNAR COCONUTS s' COCONUTS BATTICALOR NEW IRRIGATION SCHEME PORT DEVELOPMENT, TEA COCONUTS TEA COCONUT OIL. PROJECT STEEL-ROLLING ΚΑΝΟΥ" MILL PROJECT TEA COLOMSOS RU&OER YEA TEA/TEA XURSER TER NEW KYDAQELICTAC SCHEME RUBBER TEA AUBRE PATWOOD FACTORY 60 COCONUTS INDIAN OCEAN egº B2 E A number of other plaats arc being extended and reorganised, among them a steel-rolling mill and factories for the manufacture of plywood, glass and pattery. SOCIAL SERVICES Here the main emphasis is on schools and bospitals. Standards ia educztion are already very high, and there is free cduction up to and including the university ; nearly 7 out of every 10 people in the Island aan read and write. A large number of old school buildings, however, need to be replaced, and act schools are being built. The present hospital capacity of 2.7 beds per thousand is to be doubles during the six years. In this connection it is worb noting that malaria has been almost completely climinated from the Island since the warm very senarkable achievement, 28 ·Mazt-tasteng * 30 agncultural rescarch station La Malaya Better nerbods of stil tirring and use of detect seeds can do much to raise productivity on the land ·The University College of Science in Calcutta is helping to train men for skilled jobs in agriculture and industry. This is a picture of one of the laboratories A bio-chemist working for the Tea Research Institute in Ceylon. Many more scientists and technicians are needed in South aod South-East Asia today ·Students at the University of Malaya, Singapore. Ao amalgamation of two older alleges, the University received a Charter in 1949 and serves the whole of Malaya 0 indu und Pakstan send cany of their engineers abroad for training. Here is • Sath student examining machinery at 1 government training centre in Britain ·hout nice nothing can succeed" So runs a Malay proverb, and it sums up st urgent of all the needs of ordinary folk in South and South-East Asia ·1024 ALOR STAR AKCE RUCE CHUDBIR BUTTERWORTH GEORGE TOWN οιοντα FEDERATION OF MALAYA AND KOTA BHARU SINGAPORE - RESOURCES AND NEW DEVELOPMENTS COCONUTS MILES 0 25 50 75 MICE • KUALA TRENGGANU NEW AICE COCONUTS GROWING SCHEMES 127 000 ACRES TIN AUSSER IPOH TIN TIN AKE COCONUT KUALA LIPIS Rict COCONUTS : CHINA In Aussen .י אוז aces TIN RICE KUANTAN CONNAUGHT ONDGE NEW ELECTRIC SCHEME RESTRAITS ***** RICE AICI SEA Reaza KUALA LUMPUR RICE TIN NUINEN - SEREMBAN OE MO MALACCA COCONUT COCONUTS O RKI MALACCAY RUBBER COCONUTS JOHORE BAHRUN SINGAPORE 2N EXTENSION TO ST JAMES OWTI STANON PORT DEVELOPMENT SINGAPORE MILES 104 E MALAYA AND BRITISH BORNEO BIRD'S-EYE VIEW The Federation of Malaya, Singapore, North Borneo and Sarawak arc four separate teritories with a combined population of nearly 7 million ; roughly 5 million of these bre in the Federation and I million in Singapore. There is very little industry in these countries apart from the tin mines in Malaga and the oufields a Brush Borneo. The great majority of the people work oa the land, but fewer than 8 acres our of every 100 are under culuvitos, the rest being mostly jungle. The main crops are rubber (3,700,000 acres), noc (over 1,000,000 acres) and coconut (700,000 acres). 29 ·Development in large parts of Sarawak and North Bomco has only just begun. In the Federation of Malaya and Singapore, on the other hand, the standard of living has reached a somewhat higher level than is to be found in the surrounding countries. The first aim of development is to broaden the economies of these territories by increasing output of rice and other agricultural products. At the same time, to pave the way for setting up new industries, considerable sums are being spent on power-stations and transport. The Connaught Bridge Power Station in Malaya is the biggest single project in this field, and the work is already well advanced ; its eventual capacity will be 80,000 kilowatts. Roads are being improved, and the railway up the East coast of Malaya is being restored after being taken up during the war by the Japanese. RUBBER AND RICE IN MALAYA The Federation programme concentrates first and foremost on increasing production of the two main crops in the territory, rubber and rice. There are some 350,000 rubber smallholdings, averaging about 3 acres cach, on which the trees are old and yields are falling. If the old trees could be replaced by better types, the yield per acre could be trebled. The trouble is, however, that the new trees would take seven years before beginning to yield, and the smallholders cannot afford to lose part of their present income by destroying some of the existing trees-quite apart from the technical difficulties of replanting part of a smallholding. The Government can help to tackle this problem in a number of ways. In some placcs, for instance, new land can be cleared and planted with high-yielding trees, so that smallholders can be settled there later on. Alternatively, a number of smallholdings can be grouped together and part of the arca replanted. Loans will also be made to the larger producers of rubber and other crops to help them to develop their estates. The Federation at present produces only about 400,000 tons of rice : year, out of a total consumption of 1,000,000 tons. Steps are being takeri to increase yields by providing irrigation, drainage, better strains and protection against pests. At the same time new rice-lands arc being opened up, some of which may be suitable for mechanical cultivation; pilot schemes are at present being undertaken to find out what can be donc on these lines. All these measures, however, will do little more than keep pace with the increase in population, and the Federation will continue to depend on imports for a large part of its rice supplies. Apart from developments in agriculture, power and transport, the Federation is spending large sums on cduction, housing and health the social services in fact are the largest of the four main sectors of the programme. The need for more schools and teachers is particularly urgent; at present only one child out of every three of school agc receives any kind of schooling 30 ·115€ SULU SEA o NORTH BORNEO Me NORTH SARAWAK AND BRUNEI SEA ESSELTONS LOVER Tolos che UTS BORNEO SANDAKAN LABUAN Ruan AUTNER BRUNEI PORT DEVELOPMENT W W.Es 50 100 Coconut OM BRUNEI TIMUERO TAWAU BINTULDTIMER CHINA CELEBES SEA HUNDER SIBU SARAWAK (queue XUCHING SPECIAL NEEDS OF SINGAPORE Singapore is onc of the great ports of the world and lives mainly by trade. The island is densely populated and has some industry, but very little agriculture. A farge proportion of the people live in slums, where there is Serious overcrowding. This explains why half the expenditure in the gelopment programme is for education, health services and housing, including the extension of water supplies and sewerage. The Government aim to prourde free, universal and compulsory education for children of school are by 1960, and there are plans for an extra 3,000 hospital beds. New houses *** menu be needed for anything up to half a million people. *** poser station as being built on the island. There is also to be an Eternational civil sirport, and the docks are beisg eslasged. RECONSTRUCTION IN BRITISH BORNEO Month Borneo suffered heavy damage during the war, and much of this damage has still ta de trade good. The development programme provides therefore for the reconstruction of buildings, ports and railways, as well as for erat improvements in agriculture, transport and social services, In Sarawak communicauons are being improved, better methods of rice w'ravon are being escouraged, and surveys are being carried out to discover the full extent of the country's natural resources. Brunci, & salt Protected State which lies betreen North Borpeo and Semaks is able to pay for its development programme out of its own Ineles, which are derived largely from oil royalties, Development is, kasser, being hindered by a shortage of trained men. 31 ·Development in large parts of Sarawak and North Bomco has only just begun. In the Federation of Malaya and Singapore, on the other hand, the standard of living has reached a somewhat higher level than is to be found in the surrounding countries. The first aim of development is to broaden the economies of these territories by increasing output of rice and other agricultural products. At the same time, to pave the way for serting up new industries, considerable sums are being spent on power-stations and transport. The Connaught Bridge Power Station in Malaya is the biggest single project in this field, and the work is already well advanced ; its eventual capacity will be 80,000 kilowatts. Roads are being improved, and the railway up the East coast of Malaya is being restored after being taken up during the war by the Japanese. RUBBER AND RICE IN MALAYA The Federation programme concentrates first and foremost on increasing production of the two main crops in the terntory, rubber and rice. There are some 350,000 rubber smallholdings, averaging about 3 acres cach, on which the trees are old and yields are falling. If the old trees could be replaced by better types, the yield per acre could be crebled. The trouble is, however, that the new trees would take seven years before beginning 10 yield, and the smallholders cannot afford to lose part of their present income by destroying some of the existing trees quite apart from the technical difficulties of replanting part of a smallholding. The Government an help to tackle this problem in a number of ways. In some places, for instance, new land can be cleared and planted with high-yielding trees, so that smallholders can be settled there later on. Alternatively, a number of smallholdings can be grouped together and part of the arca replanted. Loans will also be made to the larger producers of rubber and other crops to help them to develop theit estates. The Federation at present produces only about 400,000 tons of rice a year, out of a total consumption of 1,000,000 tons. Steps are being taken to increase yields by providing irrigation, drainage, better strains and protection against pests. At the same time nety nicc-lands are being opened up, some of which may be suitable for mechanical cultivation ; pilot schemes arc at present being undertaken to find out what can be donc on these lines. All these measures, however, will do little more than keep pace with the increase in population, and the Federation will conunue to depend on imports for a large part of its once supplies. Apart from developments in agriculture, power and transport, the Federation is spending large sums on cducuon, housing and health; the social services in fact are the largest of the four main sectors of the prom grammc. The need for more schools and teachers is particularly urgent; at present only one child out of every three of school age receives any kind of schooling. 30 ·TRAINING OVERSEAS Zasis, Pakistan, Ceylon and Malaya are already seading as many of their smiles abroad as they can afford. Slany of them go to Britain, and in 148-9 there were 860 students from India, 110 from Pakistan, 170 from Cayloa and 113 from Malaya on the rolls of universities and university Alleges in the British Isles quite apart from a probably even large number of students from South and South-East Asia who were attending other technical and training colleges. Australia, New Zealand and Canada also provide university places for Asian students. India herself has a scheme for granting scholarships in her vniversities to students from other countries, md 6 such scholarships were awarded in the academic year 1949-50. The Commonwealth countries are seeing what they can do to widen the cpportunities for study and research abroad, particularly in agriculture, medicine, engineering and education. India alone wishes to send 3,000 people abroad to study these subjects in the next six years. As an example of Phat can be done, the Australian Goverament are proposing in 1951 to TANT * ctra 150 fellowships and to arrange for several groups of technical sudents to visit Australia; plans are already being worked out. GETTING EXPERTS FROM OVERSEAS The training of technicians is a slow process. In the meantime a large bumber of highly qualified experts are urgently needed by the countries of South and Sounh-East Asia for work on developinent projects, and the only bope of getting them is by recruitment overseas. it is impossible to say at this stage exactly how great the demand will be over the next six years, but preliminary estimates suggest that approximately 1,300 overseas experts will be wanted in the area by the Commonwealth countries alone if their Froganmes are to go forward as planned. This total includes about 740 esgineers, 95 agricultural experts and 80 medical specialists. Some of these men will be wanted for three or four years, others only for a few muraths, but the number required at any one time during the six years may well be anything between 500 and 750. The countries in the area are already getting part of the technical assistance they seed through the employment, whether by Governments or private terprise, of Orerseas contractors and consulting Engineers. The most de problem is that of recruiting overseas esperts for government service in the area, particularly when the expert is wanted only for a few months. SCHEME FOR TECHNICAL CO-OPERATION It was at Sydacy in May 1950 that the Commonwealth countries decided to start a Scheme for Technical Cooperation in South and South-East Asia nd agreed to contribute up to 28 million towards its cost over the three years beginning in July 1950. A Council is to be set up to non it, assisted by a Burcu with its headquarters in Colombo. The main job of the organisation will be to find out what the countries in the area are looking for in the way of 33 ·Two Main Needs The plans that have been made for tackling the problem of economic development in South and South-East Asia show that the Governments in the area are determined to do everything they can to fight against the evils of poverty, hunger, illiteracy and disease. How much they can do in the next few years will depend primarily on two things. How many trained men are going to be available in the area to help is putting the schemes into practice? What extra supplics of machinery, equipment, materials, clothing and food will these countries be able to obtain from abroad, over and above what they can pay for themselves? THE NEED FOR TRAINED MEN There is an acute shortage of experts of all kinds in South and South-East Asia, particulariy of engineers and agricultural specialists. There are three ways of overcoming this shortage : 1. By training more people in the area. 2. By providing training overseas for more people from the area. 3. By obtaining more trained men from abroad. TRAINING IN THE AREA There are many people in South and South-East Asia who are skilled in village crafts and is working as individuals with simple tools, using traditional methods. There are few, however, who have had any training in large-scalc industrial production or in applying modem techniques to agriculture. It is not simply a question of the topgrade espest. Hundreds of these will certainly be wanted, but too will thousands and thousands of foremen and skilled and semi-skilled svorkers, who must be trained locally and even in the case of the most highly skilled technicians it will often be more satisfactory to provide training inside the arca. In 1919 there were just over 3,000 universities, technical training colleges and trade schools in the Commonwealth countries of South and South-East Asia, and they were turning out about 150,000 trained men a year. By 1957 it is hoped to increase the number of institutions to 3,670 and the output of trained men to carly 200,000. 32 ·The Commonwealth countries in the area reckon that over the nert six years they will need altogether to import goods to the value of nearly 41,100 million beyond what they will be able to pay for out of their own current exports. This is not, of course, an exact estimate, and it could easily be upser by unforeseen events. If, for instance, there sbould be any sharp fall in world demand for the products of South and South-East Asia, it would be very much more difficult for the countries to find the means of paying for their imports, and they would then need more belp from outside. The figures for the individual countries are as follows: India £818 million; Pakistan £145 million; Ceylon £60 million; Alalaya and British Borneo (61 million; TOTAL £1,084 million. HOW ARE THESE EXTRA IMPORTS TO BE PAID FOR ? There are five main ways in which the money might be found : 1. Out of the overseas assets which the countries in the area themseloes possess (in particular, the sterling funds which some of them built up in London during the war). India, Pakistan and Ceylon expect to draw on these funds up to a total of £246 million during the six years. In so far as they do so, it will mean that Britain will ultimately have to supply goods to this value from her oten production, thus in effect repaying is kind a further instalment of her wartimc debts. 2. Out of money put up by pricate incestors abroad for use by private enterprise in the area. It is too early to say how much may be expected from this source, but the opportunities for private enterprise in South and South-East Asia should increase as the development programmes get under way. 3. Out of money lent by private imestors abroad to Governments in the area, for example, by subscribing to loans floated in London and other important financial centres. Lovestors in London are being invited to lend money for many other purposes; this will bmit the amounts that can be borrowed there by the Governments of South and South-East Asia. There should, however, be scope for raising funds in private capital markers elsewhere. 4. Out of loans from the International Bank for Reconstruction and Develop ment. This is a very important source of funds. The Bank has already lent $621 million to India for particular development projects (including toc Damodar Valley scheme) and is at present segotiating loans to Thailand of the order of $15 to $20 million, It is hoped that the Bank will consider the possibility of making further loans for development in the asca. 5. Out of gifts and loans from Governments outside the area to Governments inside if It is very unlikely that the four sources already mentioned will provide all the money needed from outside to coable the Governments of South and South-East Asia to carty through their development programmes. Help will therefore be needed also from other Governments. The Goverstents of the Commonwealth countries outside the area are seeing what they can do, but the task us planly too big for them to tackle alone. The co-operation of other countries is necded too. 35 ·overseas experts and training facilities and to see what an be done to help them. At the same time the Council will assist these countries to extend their own facilities for training for instance, by providing them with books, visual aids and other equipment for use in training schools. The Council for Technical Co-operation will not be the only body tworking in this field. The United Nations and its Specialised Agencies are already doing much to help individual Governments all over the world to find the trained mea they need, and only recently the decision was taken to expand the United Nations Technical Assistance Programmc. Funds totalling $20 million have been voted for this purpose, and roughly one-fifth of this will be contributed by the Commonwealth countries. The United States will also be in a position to provide technical assistance under the 'Point Four' programme. So acute, however, is the shortage of trained men in South and South-East Asia thar chere is more than enough work for all these organisations. The Council for Technical Co-operation will keep in close touch with the United Nations to prevent any overlapping and to make sure that the limited number of trained men available to the arca arc employed to the best advantage. THE NEED FOR EXTRA IMPORTS The productive power and material well-being of any country depend to a large extent upon its 'capital equipment that is to say, upon the quantity and quality of its machines, power-stations, faciones, railways, roads, ports and so forth. As we have seen, the main reason why present standards of Living in the countries of South and South-East Asia are so low is because they have so little machinc-power to help in producing goods. The countries in the arca are now planning to provide themselves with more and better capital equipment. One way in which they can try to do this is by saving more, that is, by restricting consumption at home in order to devote a larger part of their existing resources of labour, materials and cquipment to making additional capital equipment-or to providing exports to pay for imports of capital equipment they cannot make for themselves. The trouble is, however, that the peoples of South and South-East Asia arc so poor that there is no margia at all for any further lowering of living standards, and there is therefore a definitc limit to the amount of their own resources which they can spare for providing capital cquipment. Docs this mean that they will have to abandon, or at least slow down, their plans for development? Not necessarily. They will be able to go ahead With these plans if mcans can be found whereby they can get the extra imports they need without having to pay for them out of their current production. It is not simply a question of imporung more capital goods, though that is, of course, essential. The countnes 7 also need more food, clothing and other consumer goods for the workers engaged on the development projects, for unless exire goods are available for the workers 10 spend their pay on there is bound to be inflation. 2

·be spent in six years
Mi
Un
results expected
6 Million tons
1.1 Million kW
more
more
(10 per cent)
(67 per cent)
food
grain
electricity
generating
capacity
production
39

·£1,868,000,000 will
lewe
these are
13 Million acres
13 Million acres
more
more
(35 per cent)
(17 per cent)
land
land
under
under
cultivation
irrigation
38

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·CONCLUSION IN THIS BOOK we have cxamined the problem of cconomic dermi in South and South-East Asia and we have seen why it is a matter of concern to ordinary men and women all over the world. We have seatty how a new approach has come to be made to this problem since the how the Governments in the area have drawn up plans for a great sustained campaign against hunger and poverty. Some of the plans have been briefly described. They are big plans, they show how seriously the Governments in the area are takings' responsibilities for the well-being of their peoples. Nevertheless, i of less than £2,000 million which these countries are proposing to. development in the next six years seems small whea measured against needs of the area or against the scale of developmeor in Western North America. It is clear, however, that even such a limited and rcalistic : this cannot be carried out unless the countries of South and South Asia get help from outside. They need more trained men. Theyaced extra supplies of many different kinds, among them railway engines, tractors, forries, machinery, clectrical equipment, iron and fertilisers, food and textiles. If this help is forthcoming, there is real ground for hope that the poor of South and South-East Asia will gradually succeed in winning for scives a higher material standard of living than they have known in the. A long road lies ahead of them, and there are many difficulties and to be overcome, but with the support and encouragement of the other peoples of the world they will surcly prove equal to the challenge and the measure of prosperity and well-being which is their duc.

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