Headaches by the Dozen Romesh Thapar

THE ECONOMIC WEEKLY April 28, 1962 the diversion of land from food- after the cessation of the aid. Owing above plan of substituting fodder grains to fodder crops, but also to the superior quality and the for cereals on marginal lands pro meet the present shortage of food- smaller area of the land to be so bably we can put the food-aid wheat grains and future increase in de looked after, efforts to increase to much better use and make it a mand. It is also assumed that fertility are likely to be more re sources of capital formation. efforts will continue to be made to warding than at present. If this R P SINHA increase production of cereals on still leaves a shortage there is no Ranchi University, the land remaining under cereals harm in meeting it with commercial Ranchi. so as to meet the demand for food imports of food. By adopting the April 23. Capital View Headaches by the Dozen Romesh Thapar RELYING on the opinions expres- 89 crores deficit financing en must be thrown out of the country sed by the 'national press', visaged. or his political activities stopped. you'd think that all is well. The Unless the budget is treated as We argue that this is a free country, long-awaited budget has not really an instrument of social change, it that Suvarna has every right to seek disturbed the marketeers, Prime will always hold up development in asylum here, that he is not organis Minister Nehru and King Mahendra India and we will continue to breed ing a coup from Indian territory. of Nepal seem 'satisfied' with their entrepreneurs of affluence and To this Kathmandu's answer is that parleys and the Indo Pakistani pro power who pay no wealth tax, who arms are being smuggled into blem of Kashmir doesn't look as if are not concerned with levies on Nepal from Indian territory. On it is going to create embarrassment capital appreciation and whose tax these points there seems to be no for us in the United Nations. No bracket suggests that they belong give-and-take, The opposing stands, thing could be farther from the to the impoverished middle class. are clear. India is prepared, how realities of the situation now deve- ever, to formally re-emphasise her loping. Nehru Mahendra Talks neutrality in the struggle going on While Shri Morarji Desai has There is little point in trying to within Nepal. been quite persuasive about, his record the opinions of politicians budget proposals, robbing even As regards the Chinese road pro on the budget; supporters of gov some of his enemies «f their ject to link Kathmandu with Lhasa, ernmental policy regard it as 'smart ammunition it is not still clear approved and sanctioned by King work' while the opposition sees how successful our spokesmen have Mahendra, Delhi views it as a viola the poor being made poorer (even been in tackling headache number tion of the treaty between our two Maharani Gayatri Devi of Jaipur two—the discussions with King countries and as a threat to the does!). In terms of the economic security of India. Kathmandu Mahendra of Nepal and his en development that India has em smiles and says that it is a necessary tourage of advisers. barked upon, the budget can only step in the economic development be judged on one crucial test: Does Observers here have been play of the country, very much like the it mop up extra earnings, reduce ing an interesting game — trying road that links India with Kath the threat of inflation and help to discover the identity of the per rnandu! When we argue that China hold the price line? son or persons who have been doing will use this road to smuggle the speech-writing for the visiting Indian goods through Nepal into True, the Finance Minister has dignitary. Officialdom in Delhi Tibet, we are merely assured that stressed certain sound principles: might be upset by the tenor of some this will not happen. On this that the rich should pay more, that of the earlier speeches, but it is point, too, there is no budging. the poor must also contribute their clear to everyone that a fairly mite, that state enterprises must skillful use has been made of Then there is the question of abandon the 'no profit, no loss' ap China's presence on the border. Indian aid to Nepal. This is what proach and create surpluses for Despite King Mahendra's protesta interests Kathmandu, The Tulsi further development, that indirect tions, the Kathmandu gambit is to Giri faction is convinced that India taxation need not necessarily be play India off against China, or, to should prove her bona fides by ex regressive if the right commodities put it in a nutshell, to blackmail panding her aid — a challenge that are taxed at the right rate. But Delhi into abandoning its support, is being presented to every power these fine principles collapse with to the popular Nepali Congress. interested in Nepal, whether it be the refusal to work out a system, of China, the UK or the USA, taxation which reduces glaring The 'blackmail' proceeds broadly inequalities or to force the affluent along the following pattern: If Students of Nepali affairs in the to plough back much of their India doesn't prevent Suvarna capital are divided in their coun- wealth into creative investment. Shamshere, the leader of the Nepali sel. Some suggest that we accept Without a doubt, the budget we Congress agitation who is now in the dominance of the King and have been offered is not going to India, from operating, then Kath- settle outstanding issues with him hold the price line — a fact which mandu cannot think of friendly re to his satisfaction; this is seen is sharply highlighted by the Rs. lations with us. Suvarna Shamshere as the only way of keeping the 689 April 28, 1962 THE ECONOMIC WEEKLY Chinese out of Nepal. Others, and Mahendra seems to have activised suggests that a major effort is to these seem to be more numerous, the Government of India into a be made to put India in the dock. are convinced that we should serious investigation of the inter The position that the big powers strengthen our support to Suvarna national pressure groups at work in adopt in relation to the Kashmir Shamshere who represents the the Himalayan Kingdoms of Nepal, debate will he revealing in more popular, progressive forces and in Sikkim and Bhutan. Quite clearly, ways than one. so doing make it clear to King we would be confusing ourselves il Observers here are mainly con Mahendra that he either accepts we thought that China was the only cerned with the stand that the democracy at home or suffocates force working against us. Other USA will take, for Pakistan's main himself in the Chinese embrace. nations, too. have a finger in the concern is to somehow rupture the Call his bluff — that is what is pie. What is their interest? Are forging of a Nehru-Kennedy friend suggested. Sikkim and Bhutan in any imme ship. This explains why certain The recent talks in Delhi have diate danger? Is the trouble in 'special correspondents' stationed only yielded a desire to continue to Nagaland also a bye-product of in Delhi have again started to sug talk. This, perhaps, has a positive these plans? Will it be possible to gest, though gently, that Krishna content as it will inhibit the more insulate Ladakh? In fact, the Menon is perhaps not ideally aggressive anti-Indian Nepali fac other day a knowledgeable person equipped for battle against the tion in Kathmandu from expressing suggested that 'super-sleuth Gopi 'shape. gentle-voiced' Zafrulla itself in propagandist manner. But Handu be transferred from Goa to Khan. Reports from the UN sug should this talking end in a dead the Himalayan border. The sug gest that India is going to face a lock, what then? A number of gestion is worth considering. concerted attack from many sides. interesting possibilities present The feeling that India is the Yes, reasonably enough, the themselves, but this is not the time victim of many pressures is heigh policy-makers in Delhi call this to discuss them. tened by the revival of the Kash headache-time. What with the However, one other fact should mir issue in the United Nations. mercury crossing 106° F it is also be noted in the context of the That Zafrulla Khan of Pakistan not the best time of the year for Nepal crisis. The visit of King will lead his country's delegation clear thinking. .

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