The Rotary Balita no. 678 (August 16, 1951)

Whose Throat Gets Cut? Rearmament has produced a dual menace to the pocketbook of consumers the world over. Too much money is chasing too few consumer goods; expanding industrial production is chasing scarcer raw materials. Rival recipes for meeting the menace came from the U.N. agencies. For the International Monetary Fund, competition is the cure. Its Articles of Agreement, framed at Bretton Woods in 1944, allow member nations to continue exchange restrictions and die criminations after March, 1952, only with the Fund's permission. Pressing for further relaxation of these controls, the Fund indicated that the improved financial position of some nations made such protection no longer necessary. Furthermore, competition in freely convertible currencies would tend to check rising prices. Inflation, the Survey of the Economic Commission for Europe agreed, is the greatest menace. But it points to a contrary remedy. Devaluation of currencies, authorized by the Fund two years ago, now contributes to skyrocketing prices of primary products from overseas. If industrial stagnation is to be avoided, the Survey concludes, nations should abandon the attempt to make currencies freely convertible, up the value of their money in some cases, and thus reduce the cost of imported raw materials. Competition is fine in theory, but not if it cuts your throat.. Why Not Produce More Raw Materials? Still another viewpoint was manifest at Mexico City where the Economic Commission for Latin America held its fourth session. District Governor Vicente Lomelín, of Mexico City, was Rotary's observer. Here, too, inflation stimulated by rearmament demands was a paramount concern. Enriched by high prices, particularly in metals, the Latin American countries were advised that it was safe to expand production. Long-term contracts and international Were recommended. But commodity agreements. even so, the fear remained that the claims of rearmament would interfere with plans for the development of productive facilities. How to translate the money gains from high prices into real gains of development capital was the problem. Whatever solutions are adopted - from the standpoint of theory or of expediency, of industrial or of primary producers - the menace of inflation challenged prompt action. Too little might be too late! In debating the remedies suggested by U.N. and other agencies for a situation that relates so closely to their own business interests, Rotarians will recall particularly the second question of their Four Way Test: "Is it fair to all concerned?" Are Nations Serious About Collective Security? At the 18 June deadline, only 13 nations had replied affirmatively to the question whether they were applying the embargo on trade with Communist China as voted two months ago. Soviet members said the vote was "illegal and not binding." Replies to the request for the earmarking of troops for U.N. service - deadline September - also came in slowly. Generally, affirmative replies indicated no specific earmarking for a UN police force but a willingness to make available at once forces they have stationed in areas where aggression has already occurred. Apparently. a paper army is the only response likely to the "Uniting for Peace" resolution of the General Assembly. What Form Could Peace in Korea Take? The sincere desire for peace had been amply demonstrated by leaders of many nations. Significance was attached to the visit of U.S. Defense Secretary Marshall to Korea, to the clearing of all inhabitants from an area north of the 38th parallel, and to a fresh appeal of Secretary-General Lie to the 29 nations which had voted for U.N. action in Korea, but which had provided no ground troops. Whether these developments indicated preparations for an armistice in the field - a demilitarized zone between North and South Korea - the garrisoning of Korea by a truly international army pending achievement of U.N. aims for a united and independent country - only protracted negotiations I could disclose. These would test "the sincere desire" of all concerned. How Should We Respond to Set-backs? Proposing the vote of thanks to Sir Alexander Cadogan, former British delegate to the Security Council, the president of the London (England) Rotary club said: "United Nations is an example, I think of very high human ideals and endeavors, and if sometimes we feel that the Organization has suffered setbacks through human failures, I do not think we should be unduly discouraged, because, after all, everything in this life and this world, if it is worth attaining, has to be struggled and fought for. "I was very glad to learn from Sir Alexander that he is of the opinion that there are definite signs of hope on the horizon that U.N. will win through. On behalf of all of us here present, and on behalf of my fellow-Rotarians all over the world, I will pledge to Sir Alexander our continued, full-hearted support of U.N." (Loud cheers.) Addressing the Rotary club of Brussels, Belgium, on the United Nations, Minister of State De Schryver concluded: "U.N. will have no significance if the peoples who are its members are not prepared for sacrifice. Sacrifices must not be made only by others. They must also be made by us. (Prolonged applause.)