The lesson of the US-Cut Episode

Upadhyaya Warn Against Large–Scale Foreign Assitance

Kota, 25 May speaking at a public reception accorded to members of the Jana Sangh Central Executive, Pandit Deendayal Upadhyaya warned that though there may not be explicit strings attached to any programme of economic aid, foreign influence was implicit if foreign capital came to occupy any critical position in our scheme of development.

The BJS General Secretary expressed strong resentment over the attitude of the US Government on the question of India purchasing supersonics from the USSR. He said that no Indian nationalist could accept this attitude.

He said that the cut in the foreign aid by USA as a reaction to our reported decision of purchasing MIG supersonics from Soviet Russia has made it clear that the large–scale foreign assistance on the basis of which we have formulated our plans cannot be secured without imposing some sort of bindings on our political decisions. “It may be” he added, “that for the present we may somehow or other tide over the difficulties created at our foreign exchange front. However, it is necessary that we reconsider our decision with regard to foreign investments.”

Referring to more basis aspects of foreign aid, Sri Upadhyaya said that “apart from the political influence inherent in it, foreign capital also determines the direction of our economic growth. By importing foreign technology we create a situation in which there is not only a big gap between production and needs of consumption but also an abundance of unutilised resources. It is for this reason that during the last 14 years despite large–scale unemployment and decapitalisation on the other.”

The rupee payment system, he said, might help us in tiding over the balance of payment situation but it provided foreign powers with an added instrument of influencing the country’s political life by discriminating in the acceptance of purchase stipulated under these agreements.

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