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INDIA, THREE MONTHS AFTER:
Sitzkrieg and the Gold Flush

Y, FEBURARY 7,,1963

NIGHT EDITOR: GAIL EVANS


(EDITOR'S NOTE: This is the sec-
ond of a two-part analysis of the
Indian scene two and one-half
months after the Chinese attack of
Oct. 20.)
Since these articles were written
nearly one month ago, there have
been significant developments in
India:
1) The Union government has
promulgated a Gold Control Act
which requires registration of all
gold holdings, bans forward trad-
ing and forbids sale of gold of high-
er purity than 14 karats. Ultimate
aim is to bring out for public use
the vast gold hoard of India, esti-
mated to be worth as much as $8
billion.
The registration sections are ob-
viously unenforceable, which really
does not matter since the govern-

ment is using economic rather than
police sanctions. If the public real-
izes the control act will not be re-
pealed, it will bring the very high
Indian price of gold down to the in-
ternational level, which will in any
event render smuggling unprofit-
able. And since, even at this price,
there will be no market for gold,
because the unpalatable registration
provisions can be enforced on any
future sales, the public will thus be
encouraged to invest in liberally-
provisioned government gold bonds
as the only reasonable way to get
its money back. Gold, in effect, will
be rendered valueless except in ex-
change for the bonds.
The government will avoid the Im-
mediate major problem of inflation
by issuing bonds rather than new
currency against the bullion and

then spending the gold abroad.
Since the gold will be turned in at
considerably less rupee value than
it was bought for, the government
will also have destroyed a certain
quantum of saved wealth and thus
affected property distribution. But
without the devaluation, there
would be no practicable way to
flush the gold out, since the bonds,
as it turns out, are far from being
lucrative enough for the purpose.
2) The Planning Commission ap-
proved next year's Plan without sub-
stantial alteration. Next financial
red letter day will be Parliament's
budget session later this month.
Higher taxes for defense are in the
offing.
3) India's politicians and news-
papers are taking increasing notice

In Defense of de Gaulle:
S~bome Valid Obections

OST BOTH in French President Charles de
Gaulle's bombastic nationalism and the
ter reaction against it, are some very im--
rtant truths about Britain and the Common
krket. Rightfully, he points out that Brit-
i has incompatible economic commitments,
at the market should not be allowed to
pand to an unwieldy point and that Western
rope should not abjectly follow the dictates
the United States.
When the Common Market talks were to
en in Brussels three weeks ago, Britain was
t in a good bargaining position. The nego-
tions on British entry were snarled on
ricultural policy and on special concessions
the Commonwealth. De Gaulles' unexpected
ess conference statements and subsequent
ench actions only brought the moment of
tth closer.
Britain, de Gaulle said, is an insular, marl-
ae nation, linked through the Commonwealth
h diversified countries. Its economy is
istly commercial and industrial with little
iculture. The market, on the other hand,
a compact economic unit that has few
>nomic commitments to other nations. Its
nomic existence does not depend as heavily
trade with non-market nations and, in large
asure, the market is agriculturally self-
'ficient.
Vurther, Britain has responsibilities that
Ye proved incompatible with joining the
,ket. Many of the industrialized nations of
Commonwealth-New Zealand and Aus-
ala, in particular-depend on Britain for
de.
HE UNDERDEVELOPED Asian Common-
wealth members depend on Britain as the
.rket for their raw materials, especially
tiles. If Britain were to accept Common
,rket textile tariffs, these nations too would
seriously affected.,
3efore the Brussels talks broke down, some
gress had been made in protecting the
nmonwealth economies. . The market had
'eed to give the African and Asian states
ociated status with special tariff considera-
ns. Progress had also been made on giving
cial consideration to New Zealand, Aus-
Llian and Canadian products.
Vhile some arrangements would not have
t the market, they would not be enough for
Commonwealth or for Britain. The in-
strialized members, in particular, would
re to seek new markets and find new sale-
e products. This would mean a short, but
ense, dislocation of their .economies and
e of the countries had planned for this.
tain, already needing new markets for its
ducts, would still have to expand for Com-
n Market tariff barriers would reduce
nmonwealth trade.
'hus Britain would have to undertake a
or economic readjustment to enter the
nmon Market. While willing to go part way,
was not prepared to "Europeanize" her
homy to fit the market. The Common
rket was not about to change itself radically
Britain, so de Gaulle just pointed out the
roaching dead end.
i GAULIE'S second point, that the market
should not become unwieldy by adding too
ay members, has wider ramifications. In
past two years European governments out-
the market and Atlantic Union romantics
e dreamed that the Common Market would
the cornerstone of Western economic and
tical hegemony that would stretch from
Elbe to the Pacific.
everal "Outer Seven" nations joined Brit-
in applying for full Common Market
nbership. Some like Denmark or Norway
id be easily swallowed into the market,
others like Greece have an economy too
r and too different to merge effectively
E prosperous, industrialized France or West
many.
the market got too large, its cohesion
ild be destroyed and formulating concerted
iomic and labor policies would become dif-
It if not impossible. The market would de-
erate into a free trade area. While this end
idmirable, it is not the only thing the
'ket nations want out of their alliance. The

Common Market is the first step toward merg-
ing six essentially interlocking economies into
one. Too many intruders would destroy this
concept.
Britain is neither a brother nor 'an interloper
to the Common Market. In many respects, its
economy is fitted for the continent, but its
need to trade widely and its Commonwealth
commitments make it unsuited for an inte-
grated West European economy. Caught be-
tween two, somewhat conflicting, needs, Brit-
ain was temporizing, trying to serve both.
However, this approach was not'adequate for
the market nations and de Gaulle just pointed
this out.
De Gaulle's remarks rudely shatter the
dreams of the Atlantic Unionists who advocate
the economic and political unity of the West
without realizing the consequences of their
vision and without comprehending the serious
social change inherent in such unity. He points
out that this unity cannot be achieved over-
night or by a single stroke of the pen. De
Gaulle's intransigence does not sound the
death knell to these ideas, but rather stresses
the major readjustments needed fpr this vision
to become true.
LASTLY, de Gaulle attacked any attempt to
make the market a "colossal Atlantic com-
munity under American leadership and dom-
inance." He fears that Britain is the prover-
bial camel under the Arab's tent, ready to
snatch the market away from the Europeans-
especially the French-and give it to the
Americans.
In recent years American foreign plolicy has
vacillated from bland reaction to international
crises to heavy-handed bullying of its allies.
Since the success of tough diplomacy in the
Cuban crisis, American diplomacy has been
cocksure and arrogant. Behind the scenes the
United States has been working very hard to
admit Britain into the market. De Gaulle fears
the Americans want Britain in as a base to sell
their goods in Europe without having to face
Common Market tariffs. He also sees the
British as United States' supported threat to
his leadership of the market.
This point of de Gaulle's is less tenable
than his others. His grandiose ego that has
long dominated his thinking and French policy
shines through. While it is true the United
States would like a major role in Common Mar-
ket affairs, it is not aimed against de Gaulle,
per se. The French president has his own
ambitions of European dominance which con-
flict with those of the rest of the market.
Britain would serve in traditional fashion to
weigh against any single dominating European
influence.
THE FRENCH PRESIDENT'S strident na-
tionalism has forced a crisis in the Western
alliance. He did not create it, but sprung it
months or years earlier than it would other-
wise have occurred. From the earliest con-
sideration of its future role in Europe through
the negotiations with the Common Market in
Brussels, Britain has temporized, trying to
remain an independent major world power and
to adapt itself to the market at the same
time. The British have been unable to make a
choice; the fruits of their vacillation have now
matured. Britain must now rethink its entire
economic future, probably without the Common
Market until the passing of de Gaulle from
the French scene. Having failed to make a
full commitment to the market, it must now
make one to the Commonwealth and the
United States as the only trading alternative.
Britain has taken first steps in this direction
by applying for special trade consideration un-
der last year's Trade Expansion Act. United
States help will supply some of the market
cut off by internal Common Market trade and
its tariff barriers, but not enough. The Com-
monwealth nations, rather than trying to
protect the economic status quo, must now join
Britain in replanning and reorienting their
economies for increased and diverse trade.
Britain's time for temporizing is over. With
the Common Market door closed; Britain must
snap out of its shock and resolutely forge new
trade links.
PHILIP SUTIN

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of the slackening attitude, though
appareirtiy their words carry noth-
ing close to the psychological effect
of one Chinese "human wave" as-
sault~
By PHILIP. D. SHERMAN
Daily Guest Writer
MADRAS - In early 1940 they
called it "stritzkrieg," the
phony war.
India today isn't quite like Eu-
rope in the twilight days before
the conquest of Scandinavia, but
there are some similarities. There
is no apathy, but there is a state
of unreality and lack of focus.
What are the Chinese up to?
Why did they cease fire? And just
where are they? Have they with-
drawn, or are they hidden in the
hills?
These are the questions, and no
one seems to have the answers.
The war has become one of
words only. Good at speeebmak-
ing, India's leaders are keeping up
a flood of exhortations. And no
one can doubt Nehru's "iron de-
termination" to see India safely
through her hour. of trial.
«
BUT NO LONGER are the fine
words punctuated by the sounds
of battle. The spectre of China is
slipping behind Pakistan's Moslem
shadow.
The ~debate with Peking now
concerns obscure geographical
lines. It's hardly calculated to ex-
cite popular imagination or un-
derstanding..
The long-term viability of the
Chinese-spurred "national awak-
' ening" thus remains unclear. The
evident new, spirit percolating
among the masses at first seemed
likely to put a real and previously
lacking popular impetus behind
economic development and throt-
tle disunifying forces.
There's evidence, of course, that
this has happened. Separatists
have pledged allegiance to the un-.
ion; Kanpur woolen workers are
working overtime, for free, to
clothe shivering 3awans, India's'
private soldiers. Public sector steel
plants are finally producing close
to capacity; though the emergen-
cy may not have anything to do
with this.
IF THE BITTER autumn is ulti-
mately to yield a bountiful har-
vest, two things are clear: thee
gains will be a bit less dramatic
than seemed likely in the battle's
heat; and the Indian people will
have to overcome the torpor of the
present atmosphere.
Whatever the case, the govern-
ment is certainly resolved to go
ahead with the armaments pro-
gram. The necessary economic de- ,
cisions, which will reshape the'.
course of Indian economic develop-
ment somewhat, are largely still;
to come.
Some Plan changes have already
been announced. No new uhiver-
sities will " be opened next year,
also it sound educational decision.
The central government will cut
development grants to states,
which are responsible for agricul
tural and community development.
Licenses for private industrial ex-
pansion won't be issued to'more
than 100 industries.
BALANCED against the hopes
and quiet calculations are the ef-
fecting of the sluggish atmosphere
in which some crisis measures have
failed miserably, notably an offer
of gold bonds.
Gold is necessary to buy foreign
arms, and the government made
an exceptionally, generous offer-
unusually high interest, ;no taxes
and on questions asked. Since, as
Union Finance Minister Morali De-
sai put it, many people hold gold
in order to conceal "ill gotten.
gains," the last is significant, be
cause it makes dishonest money
honest. But in a country 'where'
most everyone retards gold as the
most solid and substantial way to
hoard money, no matter how bb-
tained, the yellow 'metal hasn't°

been forthcoming.
Popular contributions to the Na-
tlonal Defense, Fund. have been
substantial and willing, ' but there
are now recriminations against the
rich -- the capitalists and the
princes-for not bearing their
share. The Nizam of Hyderabad,
one of the world's! richest men,
gave only $40,000 and:. said he
couldn't afford to turn back any
of his government-filled priyy,
purse. Though' war finance is
mostly a matter of higher taxation:
and deficit spending, the Nizain's
"poverty" didri't" go over very well.
There are reports, state govern-
ments aren't -following 'central
government requests to cut expen-
ditures and spur planned obiec-
tiveg.
THE SLACKENING PACE can
best be seen negatively in the rela-
tively peripheral issues which
seem to be exciting the most con-
troversy. Though there's been some
meaningful debate about war and
foreign policy, more heat is gen-
erating over domestic issues like
Congress politics, prohibition and
the amount of tolerable public de-,
bate. And, of course, there is Kash-
mir.
V. K. Krishna Merlon made
news when he visited his suburban
Bombay constituency and became
embroiled with anti-Menon con-

(Was President S. Radakrish-
nan speaking tongue in cheek dur-
ng a recent tribute to the land
Sardar Vallabhbhai- Patel, with'
Nehru, Ghandi's top lieutenant?
The Sardar ("leader" in Patel't
native duJarati), Radakrishnan'
said, was a man of few words-but
he was always so clear' he never'
had to repeat or explain' himself.)
PROHIBITION is a state matter
in India, but also an integral part
of the Ghandian ideology and thujs
strongly supported by the Nehru
government. Several states, ln.
cluding Madras, impose nearly. to-
tal prohibition, for the same rea-
sons as it was imposed in the Unit-
ed States.
,Opponents , of prohibition, An
emotional issue in its own right,
have argued all along the laws are
ineffective and improper and irri-
tating at best. With added vigor,
they now say legal liquor. would
mean a good deal of additiAI :
and needed tax revenue.
Uttar Pradesh ('"upper state" In
Hindi) has repealed prohlbition,'
Bihar postponed it, and half-wet-
Andhra Pradesh reportedly will
abolish It completely.
But presently, non-alcoholio'
(that is, legally non-alcoholic)
states are keeping the corks stuck'
in tight.. Nehru has pubiically
backed prohibition, arguing good!
things aro' worth the financial
price. And his ascetic finance min-' '
aster remains in' solid agreement.'
MorarJibhai as,'he is called, is tlie''.
leader of prohibition forces.
Congressmen have, however, en-
gaged in a- public debate in the'
newspapers;°bn the question.
UNDER' THE DEFENSE of In-,
dia "Act the government has broad.'
powers. of internment, In additlon
to locking up assorted Communiats
and Chinamen, it has put three
"prominent residents" of Delht be- ^
hind' bars for circulating a merp
orandum demanding replacement
of the Nehru government with an-
other.
There is absolutely no chance '.
Nehru will dose power. But it is -'
the most prominent example of a
tendency to identify open, pre-
sumably democratic criticism OV
the present regime and ' its polio'
ties with actual subversion. - (ThTe,
Congress has always, to a greater ;
or lesser extent, identified itself
withnation as a whole. Only they% ;
didn't use to Jail people.)
M. s. 'Kannamwar, who suc-
seeded the new Union Defense ;.
Minister y. B. Chavan As Congress
chief minister of Maharashtra ,
state, remarked recently that va#w,
ous 'Critics of the government pro-
fessed support to thet war effort °
but tried to undermine it by de-
manding 'a 'change in leadership;;:""r:'
and the non'-alignment policy, r '
Menon's slogan is similar: "Ones
nation, one policy, . one leader."
But despite " the, Congress's ap-
parent intention to brand ail its
political opponents as anti=nation.
al;' there has been some meaning;- ':.
ful debate. There has also been '
much rehashing of old arguments,
mostly about. the non-alignment.
Part of the' reason for such vi-
able discussion as there is is that
Nehru's tolerance vastly exceeds
that of his , lieutenants. And part
of it is the 'undoubled' eminence
and untouchability of critics such
as C. RaJagoaplacharl, one, of the
top half dozen leaders of the
SwaraJ (Independence), Move-
ment, and socialist-turned-Chan j
dian Jayaprakash N arayan; j e14
led by some the most popular man,
. after Nehru with India's masses
The Alm of much of the criti-
cism is to stimulate, enthusiasm
for a return to "tiraditiobai",,values >
of Indian society, both social and, ,
ethical.
But' the- rsame critics also advo-
cated modernization and 'expan-
sion of the army a policy which
runs diametrically opposed to any
notions of return to an older, sup-

posedly, brighter ray:
THE PRESS has been often live-
ly in its' criticism and iereasingly
analytical in its coverage. The
Hindustan Times/ for instance,
recently published a revealing
"retrospect" . on the Assam cam-
paign indicating grave problems
in the transportation network and
civil administration.
But at' first, the papers were
'simply printing government, re-
leases from Delhi, giving little co-
herest idea of what was going on.
They fallow government news pol-
icy.requests such, as suppression,
mainly far' "political reasons, of
photographs of. United .States arms
arriving at Calcutta.
This has been changing. Report-
ers are now allowed into battle
areas, and the Delhi and Indian
foreign bureaus have gotten well
beyond the stage of sticking to
what Nehru says in his speeches.
A good deal of what can only
be described as patriotic drivel still
appears, however, and there are
such . absurdities as the reports of
thousands of , men "returning to
their bases from the forward areas
of NEFA." This means they were
cut off and had to cut their way
back or sneak through the Chinese
lines,,. (U.S. publications, both the
news magazines and the New York
papers' Paris editions, have given

M\O ~ W 1 \T R '

EDUCATION PROGRAM:E
Enlightened but Ill-Starred

By ELLEN SILVERMAN
?RESIDENT John F. Kennedy's
24 point educational program
aimed at aiding those areas .which
are most needy indicates a sig-
nificant switch in administration
policy.
Kennedy is no longer asking for
across-the-board aid but specify-
ing aid for individual educational
areas. Through this type of legis-
lation, the administration is hop-
ing that the bill can get through
Congress without much of the
controversy on aid to parochial
schools or aid to segregated school
which killed the President's pro-
posals in the last session.
The debate which raged over
aid to education last session is not
dead. The Roman Catholic Church
still claims that aid to education
ought to encompass parochial
schools and is not satisfied with
Kennedy's new 'proposals even
though they would allow loans
for construction in both private
and public colleges, loans for stu-
dents in these institutions and
matching funds for teacher train-
ing in special education.
In addition, liberals will prob-
ably press again for aid only to
those areas which are integrated.
They maintain that segregated
schools should not receive aid
from the federal government, hop-
ing economic need will force the
schools to integrate.
REALISTICALLY speaking,
there is not much hope for many
of the President's proposals. Edu-
cational spending is tied up with
domestic expenditures and Repub-
licans are already talking of cut-
ting the domestic expenditures
proposed in, the record $98 billion
budget.
Congressional floor fights over
aid to parochial schools or inte-
grated schools could bog down ac-
tion or even send bills back to
committee which would mean ulti-
mate death to the ftieasures.
Yet Kennedy's proposals may
well indicate not' only the trend
for future educational proposals
but for the 1964 campaign as well.

money per pupil are located in the
South. This brings in the zon-
troversial issue of segregated
schools.
School construction and teacher
salaries are lowest in the Soutn-
ern states, with Mississippi having
the lowest expenditure per pupil
and lowest average teaching salary
in the nation. But these are the
states which refuse to accept fed-
eral aid if it means integrating
schools, and these are the states
whose Congressmen most strongly
oppose the entire principle of fed-
eral aid to education.
Oddly enough the impacted
school aid is readily accepted in
the South. Georgia is high on the
list of those states which receive
such aid. (This is money granted
to a school system which is over-
crowded due to children whose
parents have been placed in the
area to work on federal projects of
some type.)
* * s
THE PARADOX is easily ex- -
plained, however, since the im-
pacted aid is given to schools
without stipulations regarding in-
tegration.
The President has also pointed
out new problems which are aris-
ing across the country. With the
population from the World War
II and post war eras now hitting
the high schools and colleges, over-
crowding has become a problem.
This is particularly evident 'in
the college,
Kennedy proposed a three-year
program of grants for construc-
tion of junior colleges. It is hoped
that these public, community in-
stitutions will help to alleviate the
need for the increasing number of
students. In Michigan, the desire
for such schools has already been
seen in the building of Highland
Park, Flint and Delta Junior Coi-
leges among others.
SPECIAL EDUCATION is also
under consideration. Proposals re-
garding the education of the gift-
ed, the mentally retarded, the
adult.. illiterate and the disadvan-
taged or slum-area child are con-

problems than rural or suburban
schools because of population dis-
tribution. Often the quality of
the system is pulled down because
of the lack of teachers willing to
work in slum areas. Special grants
to encourage and train teachers
for such areas will aid the urban
districts providing staff who are
qualified and willing, not just
"pushed" into these schools and
eager to transfer as soon. As Pos-
sible.
WITH ALL of these specific
points the education proposal has
little chance of passing, in 4 this
session of Congress. If the separ-
ate bills come from committee to
the floor, and even this is a moot
point, the debating over amend
ments ' sure to be introduced for
integrated or parochial schools
would certainly pigeon-hole the
bills, thus killing them.
In the committees themselves
much the same problems will arise
and many of the proposals will
probably be killed in the House
rules committee just as the aid to
education services bill was killed in ,
the last session.
Some provisions which will be
passed will probably be out in the
amount of the appropriations.
Congress is committed to federal
loans to college students but the
amount which the President has
asked for is'above the present rate
which many congressmen feel is
necessary.
Colleges and universities in the
past have been less affected by the
fights over. aid to parochial schools
since most aid has come in the
form of construction grants and
student loans. There is little
chance that this will change 'in
the present session. In addition,
the President has clearly delin:at-
ed the provisions for parochial
universities and advocated loans
instead of grants for such institu-
tions. This will probably aid these
bill in passing.
ALTHOUGH the President has
the problems which educators face
today and presented a comps e-
hensive program, Kennedy will

Cultured Culture

ELTURE" is something you can never
achieve by repeating the word over and
. Unfortunately, the Chamber of Com-
ce has not realized this and is trying, to
vince everyone that Ann Arbor is the "cul-
, ;enter of the Midwest."
'iddlewestern boosterism is more sophisti-'
.d than it was when Sinclair Lewis attacked
i the twenties, but that does not make it
better.
:n Arbor is what it is because of the
versity. It is not the "cultural' center of
Midwest" (unless of course the Chamber of
merce has somehow disposed of Chicago).
LTURE IS much more than drama, music
and art- it is the motivation behind them.

The culture obsession is primarily Middle-
western. Where newspapers here have culture
sections and culture beats, newspapers in the
East have amusement and the arts sections.
There is a difference.
Culture in our "cultural center of the Mid-
west" rises and falls with the University.
During the time between sessions, final week,
and in the summer, "culture" subsides.
BUT IN cosmopolitan areas where no one
goes around screaming the word culture,
the real culture does not rise and fall on a
single factor as it does here. Two months of
newspaper strike has created problems in
New York, but it has not killed culture.
Ann Ornr m -.a ha thmilb-ral,.Pnf+-,.of