127 Foreign Contribution [] (Regulation) BUI, 1S73 128 THE TAMIL NADU STATE LEGIS- them and give amendments and so on. We did LATURE (DELEGATION OF POWERS) not have time to study this Bill. You can say BILL, 1976 that it has been there since 6th of January. You would be right in saying that. The fact re- THE MINISTER OF HOME AFFAIRS mains that such things are taken up either at (SHRI K. BRAHMANANDA REDDI): Sir, I the end of the session or the middle of the move for leave to introduce a Bill to confer on session. It is a kind of Budget session . . . the President the power of the Legislautre of the State of Tamil Nadu to make laws. MR. DEPUTY CHAIRMAN: As you said rightly, this is the Budget Session. During the The question wa$ put and the motion was rest of the Session, you will be seized with adopted. other things like the Budget, the Finance Bill, the Rail-way Budget etc. SHRI K. BRAHMANANDA REDDI: I beg to introduce the Bill. SHRI BHUPESH GUPTA; Therefore, Sir, my point is this. We think that generally, during the Budget Session, such things are not taken up. I do not know for what reasons you THE FOREIGN CONTRIBUTION have taken it up right at the beginning of the (REGULATION) BILL, 1973 ession. We are completely unprepared.

MR. DEPUTY CHAIRMAN: Mr. Mohsin. MR. DEPUTY CHAIRMAN: Mr. Bhupesh SHRI BHUPESH GUPTA (): Gupta, you will agree with me that this is an I want to make a statement. Have you asked important enough Bill to be taken up soon and him to move this Bill? not just kept in cold storage. MR. DEPUTY CHAIRMAN: Yes, I have SHRI BHUPESH GUPTA: If you think so, asked him to move the Foreign Contribution you can have it that way. Of course, you can (Regulation) Bill, 1973. have it passed in five minutes. There is no difficulty because Government has the SHRI BHUPESH GUPTA: Yes, I follow. majority. Still, I would ask the Government to You need not repeat the Bill. There is one consider this because they can create new practical point. There is no sort of hard and precedents nowadays. In the past, we have fast case about it Now, Sir, this is a very never taken up Bills of this kind right at the important Bill. As you know, it had been start of the Budget Session. It creates practical discussed in the Joint Select Committee and difficulties for those who are sitting on this the report was made in January, in fact, on the side of the House as well as for those on the 6th of January this year. Now, you have asked other because we do not come attuned to tasks us to consider it. Just now, the House is of this nature. Still, you want us to go ahead practically empty for some reason which you with it. Something, we should at least be know very well. Many Members are not in a thought of even if our views are not taken into position to come today because of the account. nominations which are being filed and that is why there is a thin attendance in the House. THE DEPUTY MINISTER JN THE This is one factor. MINISTRY OF HOME AFFAIRS (SHRI There is another factor. Normally, from the F. H. MOHSIN): Sir, I beg to I move: very beginning of the Session, such Bills are not taken up. Why? It is because Members could consider 129 Foreign Contribution [9 MAR. 1976] (Regulation) Bill, 1973 13O

"That the Bill to regulate the acceptance 1974, and by a concurring motion in the Lok and utilisation of foreign contribution or Sabha on the 25th March, 1974. The Joint foreign hospitality by certain persons or Committee, under the Chairmanship of Shri associations, with a view, to ensuring that Man-ubhai Shah, presented its report along parliamentary institutions, political as- with the Bill, as amended by the Committee, sociations and academic and other to this House on the 6th January, 1976. voluntary organisaions as well as ■ individuals working in the important areas of national life may function in a manner consistent with the values of a sovereign The Bill envisages three kinds of restrictions democratic republic, and for matters con- of a prohibitory or regulatory nature. One is, total nected therewith or incidental thereto, as prohibition of acceptance of foreign contribution reported by the Joint Committee of the or hospitality. The second is, acceptance with Houses, be taken into consideration." prior permission of the Central Government. The third is, a legal obligation to send intimation and render accounts to the Central Hon. Members may kindly recall that the Government after receipt of foreign Government introduced in this House, on the contribution. Recepients of foreign 29th December, 1973, a Bill entitled 'The contribution are accordingly grouped under Foreign Contribution (Regulation) Bill, 1973', three categories. The first category covers whose essential object was to regulate the organisations and individuals who may be acceptance and utilisation of foreign deemed as sensitive and important in our contribution or hospitality by associations as national life like candidates for elections, Go- well as individuals in our country. Excepting vernment servants, Members of Legislatures, the provisions of the Foreign Exchange political parties and their office-bearers, Regulation Act, there are no restrictions at correspondents, columnists, cartoonists, present regarding transmission of foreign editors, owners, printers and publishers of money into . Recepients of foreign registered newspapers. They are totally banned money are not obliged, under the existing law, from receiving any foreign contribution. The to render accounts for the utilisation of foreign second category includes organisations, which money, secured by them, nor are they not being political parties themselves may be prohibited from receiveing such money in any deemed as organisations of a politcal specific situation. Being aware of the scope nature, having regard to their activities or for foreign agencies to influence organisations their association with political parties. The Bill or individuals in this country through such lays down that this category shall not accept any financial aid and keeping in view the need to foreign contribution except with prior regulate the acceptance and utilisation of permission from the Central Government. foreign contribution or hospitality for ensuring The third category covers associations that our parliamentary institutions, political having a definite cultural, academic religious institutions, academic and other voluntery or social programme. They are required to give, organisations as well as individuals working in within a prescribed time, intimation to the Central important areas of national life function in a Government about the amount of foreign manner consistent with the values of a contribution received by them, the source from sovereign democratic republic, Government which and the manner in which such foreign had brought forward this Bill. This was contribution was received and the purposes referred to a Joint Committee of both the for which and the manner in which such 1 Houses by a motion adopted in this House contribution was utilised by them. on the 19th February, 1333 RS—5. 131 Foreign Contribution [ RAJYA SABHA ] (Regulation) Bill, 1973 132

[Shri F. H. Mohsin] MR. DEPUTY CHAIRMAN: Yes, it is a There is also a general clause which problem. Time is a problem. empowers the Central Government to impose such prohibitory or regulatory restrictions regarding acceptance of foreign contribution by any person or class of persons or associations not covered by the foregoing categories, if the Central Government is satisfied that the acceptance of the foreign contribution by such associations or person or class of persons is likely to be prejudicial to the sovereignty and integrity of India or the public interest or the freedom or fairness of elections to any Legislature or friendly relations with any foreign State or harmony between religious, racial, linguistic or regional groups, castes or communities.

The Bill contains appropriate penal provisions to deal with contraventions of the law.

With these words, Sir, I commed the Bill to the House.

The question was proposed.

MR. DEPUTY CHAIRMAN: Mr. Tyagi.

SHRI BHUPESH GUPTA: Take it up after lunch, Sir.

MR. DEPUTY CHAIRMAN: K», no. What are you going to do with the remaining ten minutes?

SHRI BHUPESH GUPTA: In ten minutes we can have lunch. Is there a problem for you.

133 Foreign Contribution [9 MAR. 1976] (Regulation) Bill, 1073 134

135 Foreign Contribution [RAJYA SABHA] (Regulation) Bill, 1973136

137 Foreign Contribution {9 MAR. 1976 ] (Regulation) Bill, 1973 138

"No organisation of a political nature, not being a political party, shall accept any foreign contribution except with the prior permission of the Central Government."

139 Foreign Contribution [ RAJYA SABHA ] (Regulation) Bill, 1973 140

141 Foreign Contribution [9 MAR. 1976] (Regulation) Bill, 1973 142

MR. DEPUTY CHAIRMAN: The House stands adjourned till 2-30 P.M

The House then adjourned for lunch at thirteen minutes past one of the clock.

---- '

The House reassembled after lunch at thirtyone minutes past two of the clock, Mr. Deputy Chairman in the Chair.

SHRI KHURSHED ALAM KHAN (Delhi): Sir, I rise to support the Bill as amended by the Select Committee. In fact this Bill has not been introduced a day too soon. Originally it was introduced on the 24th December, 1973, and the Select Committee has taken considerable time in redrafting the Bill.

The nation is today poised for a take-off and we are determined to .reshape our destiny and our economy. Nourished by the new economic programme which has received spontaneous and overwhelming support, the nation has acquired a new purpose and a new reality.

Sir, there was a time when territorial domination and spheres of influence of the imperialist powers and big powers were the order of the day. But now money seems to be the best way of interference in the domestic affairs of a country. But it is now a well- known and universally accepted fact that neo- colonialism is a clever substitute for the old type of crude colonialism. This is usually backed by generous foreign contributions in various shapes, including foreign hospitality.

Sir, 'money power is an important element of our economic and political 143 Foreign Contribution [ RAJYA SABHA ] (Regulation) Bill, 1973 144

[Shri Khurshed Alam Khan] set-up. Just as butions should be strictly regulated i to avoid in Hindu mythology there are different all motives and strings I attached to them. aspects of God, similarly money also has Sir, the Indian economic scene has been subtle ways of finding its way to places and changing rapidly during the last few years. ways and means where it will be accepted and produce the desired results. Sometimes these The public sector has, over the years, come to contributions assume the shape of foundations occupy a prominent place in the economic and chain of institutions and under the garb of development of the country. Apart from their performance on the domestic front, the public cultural activities also. The foreign exchange deficit and requirements of developing sector enterprises have enterei the export filed countries and poor countries that particularly also in a very big way. These undertakings are do not have oil resources these days have placing an increasing emphasis on the export added to the dimension of this problem. Even of products and services to other countries to our trade unions are not spared by the people earn foreign exchange. But, Sir, here also I who are interested in financing their activities would like to utter a in other countries. To meet this situation j word of caution that it all warrants strict effectively and in order to tone up the vigilance since possibilities of malpractices in economy, to avoid exploitation and to break various forms and shapes cannot be ruled out the hold of monopolists, there is urgent need and evidence of unfair practices can be traced for socio-economic structural changes. New if a little effort is made. This 13 very order and new values demand rapid changes. important aspect and here again I must repeat Unless a rigid control is exercised, our hard- and say that foieign hospitality plays a very earned stability will be exploited by others. important role Regular inflow of the contributions keep some j which we can easily find out if we carefully of these institutions, political institutions, examine the whole issue. Sir, without casting going and going in a strong way. The CIA's any aspersion, I would like to mention that doings all over the world have very clearly deals like purchase of aircraft ccsting crores indicated as to what could be done by foreign of rupees require utmost earn and vigilance money and foreign interference. Take, for ins- and we have to be very very careful in these tance, the investments of the multinational deals. This is all the more necessary because corporations and firms. If you examine of the facts which have come to light in such carefully their total investment and their deals between the American firms and the remittances of profits during the last ten years, airline companies of Japaa and Italy. This is you would observe that their remittances will almost a scandal at the moment. be Rs. 100 crores more than their investments during the same period and at the same time, Sir, it is almost a regular feature of some they are over-generous in the matter of societies and organisations to receive generous entertainment and expense accounts for grants and aid from foreign agencies. No patriotic reasons which are very well understood and and no self-respecting Indian will appreciate this well accepted. generosity on the ps.rt of the foreign agencies. Sometimes it is done in a very subtle way and it Sir, during the days of subsidised economy, is done under the pretext of helping literary particularly foreign-subsidised economy, with activities. This is a very subtle way of doing it hundreds of crores of rupees finding their way and we have, therefore, to be very careful. We into the coffers of the rich, the burden is must stop all such inflow of foreign money and ultimately borne by the poor taxpayer and this we must se» that these undesirable sources of thing should end immediately. Utilisation of money dry up for ever and as j soon as possible. foreign contri- Surely, such an aid 145 Foreign Contribution [ 9 MAE. 1976 ] (Regulation) Bill, 1973 146

is neither for good purposes nor in the interest to why this export is not channelised through of the country or the people. All such our nationalised or through our Government societies and all such persons must be agencies. Instead, preference is given to exposed. Contributions in the name of private people or private agents. And this research and exchange programmes, etc., indicates that there are certain motives behind must be discouraged as they have always a it. motive behind them.

Another important aspect is tourism We are passing through a very important phase of life in our chequered history, and the industry. As tourism is one of the biggest, industries of the world, naturally we are also new economic programme is the beginning of anxious to attract as large a number of tourists an enormous task to bring about social and as possible. In fact, if we can attract 5 million economic changes in the country. We have to tourists annually, we can wipe out our current be careful in this regard. There are still about trade gap to the extent of about two-thirds of 540 foreign companies in this country and the total gap. But this is also being exploited their operations must be watched very care- to propagate the views and trends not in the fully. In order to improve their prospects, they interest of developing countries but mainly als0 are indulging in a lot of hospitality and for the purposes for which foreign money is aids of various types of agencies which are coming into various fields. not working in the national interest.

Sir, another aspect which needs con- Sir, now we are determined to cut across sideration is that a large number of indoor and decade of unrealistic approach. Smuggling various other countries' associations have s has been smashed. It is a big achievement. But been formed in this country. It must be there should be no letting up in all respects. admitted that some of these associations and Similarly, as far as th foreign aid or foreign friendly associations are doing a good and e hospitality or foreign contributions are useful work and creating goodwill. But concerned, they ar as dangerous for our whether we could say the same thing about e economy, for our economic life, as smuggling other is very doubtful. Contributions received and other such activities. Particularly, it is and hospitality accepted by these associations necessary for us to ensure that the contracts need special scrutiny and special created or contracts made by the various agen- consideration, because it is not given only for cies, individuals and organizationo with their creating goodwill but there are certain other counterparts in the Middle-East countries, are motives also. looked into carefully to find out the motives, to find out the real purpose and to find out the No doubt, spectacular progress has been real objectives. made in socio-economic objectives comparatively in a short period, of late. We have, therefore, to conserve our precious Sir, the nation is on the move and prepared to resources and give the slogan: Trade is Better face any challenges. The new era leads us from Than Aid—aid of whatever nature and darkness to light, from uncertainty to stability whatever type. and from lack of confidence to self-reliance. This situation has brought about the transformation in our national life. Therefore, all loopholes, For instance, here I would like to mention wastages and interference, whether political or only one item. A huge quantity of tobacco is through the power of i money, should be exported from this country, particularly to stopped at any many of the socialist countries. But it is a secret and it is rather surprising to find as 147 Foreign Contribution [ RAJYA SABHA ] (Regulation) Bill, 1973 148

[Shri Khurshed Alam Khan] direction to our public life. Now, foreign cost and done away with a3 early and as money and foreign donations in the politics of effectively as possible It is the time to adopt the country are extremely dangerous and I this correct approach and to do the needful take this opportunity to bring to the notice of before it is rather too late. Sir, I would also the House what is happening abroad. I suggest that we must channelise our main recently read in the newspapers, American trade through the nationalised agencies and I papers and others the reports .... Now Mr. feel that the socialist countries should not Kalyan Roy has come. I stop. Please let hesitate about it. In fact, they should en- him speak. courage such moves and they should encourage such suggestions and proposals. MR. DEPUTY CHAIRMAN: Yes, Mr. But it seems that there is some hesitation. Bhupesh Gupta has yielded the Mr. Bhupesh There is something which is beyond our Gupta has yielded the floor. comprehension. It must be understood. SHRI KALYAN ROY (West Bengal): Sir, I I would also like to say that clauses 2, 4, 5 am sorry that I am late. Thank you for your kind and 9 of the amended Bill are very significant permission to allow me to speak on this, one of and essential. Here also, one thing is very the most important Bills introduced in the House. necessary. Advertisements, not of a Sir, 1 have been a Member of the Select Com- mittee on this Bill which Mr. Mohsin piloted. And commercial nature, given by the foreign we all co-operated because, Sir, we are absolutely countries or the foreign firms or the foreign in agreement with the Government that foreign organisations should not be allowed in a contributions are creating havoc particularly in the liberal way. We should scrutinise them and third world countries, Latin America, Africa and examine their purpose and their motive. Sir, Asia by trying to subvert the independence, by with these words, I support the Bill once trying to subvert the sovereignty, and by trying to again. pollute the entire political, social and economic conditions of these developing countries and the MR. DEPUTY CHAIRMAN; Mr. Bhupesh countries which have resisted and have been Gupta, do you want to speak? Mr. Kalyan resisting the foreign pressure in various forms and Roy is not here. shapes. Sir, the people of the world know how the US imperialists, the CIA backed by the American SHRI BHUPESH GUPTA: I asked him to Government, have been indulging m all kinds of come here and speak. I do not know why. . shady and sordid activities in all parts of the world . including the western European countries. And we MR. DEPUTY CHAIRMAN: Mr Kalyan are today not lacking in facts. The facts have been Roy can speak on the third reading. revealed not only in various American journals but also in various Committees of the American SHRI BHUPESH GUPTA; I will speak, Senate about the part played by the CIA. But is Sir. As far as this measure is concerned, I the CIA alone to be blamed? What is the wish to make one thing very clear. In instrument of the CIA? What is the vehicle which principle, we are all in favour of preventing the CIA used in order to subvert the inde- any kind of intrusion of foreign money or pendence, the economy, the self-l reliance interference in the shape of money in the attitude which is more and political. social and cultural life of our country with a view to, as we know very well, weakening and undermining our position as an independent free nation, distorting our culture and giving naturally a wrong 149 Foreign Contribution [9 MAR. 1976] {Regulation) Bill, 1973 150 more developing throughout the developing laying the sanction of loan, just after the coup world? If you want to develop your heavy d'etat came forward with a massive loan to the industries. If you want to get proper priee for new fascist Government in Dacca. We have your raw material whether it is iron ore or oil, seen vhat role the CIA played in Angola so if you want to develop a non-aligned foreign long. We have seen lately the uproar in the policy, you find not only visible enemies but whole of Italy to find that the CIA for the last invisible enemies also. And these invisible twenty-years, whether under Dulles or his enemies are getting all the support from the successive chiefs of the C.I.A., was CIA, backed by the United States persistently indulging in all sorts of shadiest Government. Who does not know the role of practices in Italy just with one aim, namely, the World Bank in Chile? They first stopped that the Communists do not come to power the sale of Chilean copper. Then through the through democratic channels. They have paid multinational companies they blocked ex- about three billion Liras to the various parties ports. What was assured by the World Bank to to undermine the sovereignty of Italy and the Chilean Government was later on stopped, inquiries are going on, Sir, you have seen and the World Bank brought pressure on lately the furore, the outcry that has been countries in Europe, Asia and Latin America going on in Japan and which may lead to the to stop the committed trade with Chile. And toppling or the overthrow of the present on the other hand, we find that the CIA was Government. The present Government—not actively giving money and financial support to all of them but quite a number of them—were their own coteries and allies in the Army, getting money from Lockheed. We do not Navy and Air Force and to various parties know what part the C.I.A. has played in the which were opposed to Dr. AIlendes sale of these aircraft to the Japanese Government. Sir, it has been revealed that the Government. So, Whatever country you take. coup d'etat in Greece which led to the What has been revealed to us so far, be it overthrow of monarchy and to the fascist op- Italy.. France, Angola, Chile or Cuba, is that pression of all the democratic parties the everywhere the C.I.A. has cooperated with the socialists, the democrats and the communists, multi-national companies to subvert the was a CIA affair. The entire plan was made in economy not the Communist economy. I can Washington, blessed by Mr. Nixon, who was understand that. The basis of the American the President, and actively carried out by the multi-millionnaire companies is to dominate CIA and the multi-national companies. Sir, we and subvert the economies of countries among have seen their persistent effort in Cuba which I am proud to say that India is one and through the use of mafia to poison Dr. which is trying persistently to resist the Castro. pressure from the U.S. imperialists, which has consistently been following the non-aligned policy which lately has led to the recognition Not one but a series of attempts were made of Angola much to the displeasure of to liquidate Castro and his revolutionaries so American bosses. The whole attack is directed that Cuba could again be used for the use of against the non-aligned countries, is directed multi-national company directors who used to against developing countries is diretced go to Havana in order to seek pleasure. But against those people which are struggling to they did not succeed. We have lately seen, Sir, overthrow the forrign shackles as in Rhodesia the horrible events that took place in Dacca. It 01 South Africa. These go together. Yot is no surpise that the news of coup d'etat in cannot disjoin them, you cannot disconnect Dacca was first broadcast in Washington and them, the C.I.A. and thf the World Bank, which was all along de- 151 Foreign Contribution [ RAJYA SABHA ] (Regulation) Bill, 1973 152

[Shri Kalyan Roy] the United Nations itself has focus-sed its multi-national companies and the World spotlight on the subversive activities of these Bank, these three go together. That is the multi-nationals. So we thought that a Bill will be history. I do not know what is yet in store for framed properly which will seriously tackle the us becauae Mr. Ford, being isolated from the problem. But, unfortunately, Sir, I regret this Bill American people, being isolated from the falls far short of our expectations. I have world public opinion, and Dr. Kissinger are mentioned that in my note of dissent. I have done it with great anguish. If you kindly see clause 2, it behaving not like sane men. Moynihan openly completely excludes the World Bank, the threatened the developing countries by saying International Monetary Fund. May I ask with all that if they did not vote with the Americans, humility, why i this exception? It is exactly what (hey would not get aid. That means that th e 1 have pointed out, exactly what I pinpointed, World Bar,k, the International Monetary Fund after knowing the shady and sordid activities of and the multi-national companies would be the World Bank in relation to Chile which was used in order to subvert the economies of not a Communist Government, which which was those countries. We would like to knew from not a Government which was not a Government Mr. Mohsin Now many of the total which allowed the private capital to grow. See the revolutionaries who shouted and paraded in role of the World Bank. See the role of the the streets of Calcutta and Patna and other International Monetary Fund in South Vietnam. places got money from abroad. How wag H See the role of the International Monetary Fund in possible for them in India to publish Indonesia. See the role of the World Bank and the 'Everyman' and other journals? I am International Monetary Fund in Egypt. And then, compelled to say that lately the Finance would I be unjustified if I say that the Bill today Ministry hag carried out a raid on a foundation does not tackle the problem and the source of this with which Shri Jayaprakash Narayan was evil? The source is America and the multi- associated and they have found a lot of national companies. This Bill miserably fails to incriminating documents to show that this tackle the problem posed by the multi-national particular' foundation received millions of companies. So unless this is radically revised, Dollars and Marks and Francs from abroad changed and altered, I am afraid this pollution of which was not used for the development of our politics, this subversion of our democratic Bihar. regime, this sniping at our attempt to develop our Indian economy in our own way, this constant pressure to change our foreign policy, will 3 P.M. continue. It is a fact, Sir. Nobody can deny that Anand Margis and the RSS today are getting help, they have been getting help from these How many multi-national multi-national companies and the CI.A. to subvert companies are functioning in the country? our economy which I do not think is very How many of them have secret links with the revolutionary, which I do not consider as CIA? What was their role in the last ten socialistic at all when I see the hunger or the years? What was the role of these companies massive retrenchment going on. Even this little in manipulating foreign exchange? What was attempt to eradicate feudalism in our countryside, the vole in foreign exchange racketeering and to check their black acti- what was the role in the political life of this country? Americans and lately Mr. Malaviya published a book—not one book but a series of books and articles—on the role of the multi-national companies and the C.I.A and 153 Foreign Contribution [ 9 MAR. 1976 ] (Regulation) Bill, 1973 154 vities the sordid activities of the monopolists, to manufacture rockets and time bombs, it is are the things which the C. I. A and the multi- high time we should have some foreign national companies and the American collaboration to produce blades and tooth Government do not want. So, Sir, exclusion paste. Therefore, these are the multi-national of the World Bank completely emasculates companies which are subverting our the Bill. The exclusion of the International economy. I have pointed out from the Monetary Fund emasculates the Bill. documents which have been made available Similarly, the half-hearted way in which the to us by the American Congress, by the Joint Committee tried to tackle the multi- American Senators and by the American jour- national companies and their problems has nalists, how these multi-national companies left these companies out of the control of this have been indulging in subversive activities. Bill. This has been admitted even by the American I hope Mr. Mohsin will agree with me. We Government. Mr Ford has gone on record that have seen the affairs of the Lockheed from now on the CIA will not be allowed to Company. This has been admitted by them use the multi-national companies to subvert openly. This is the case with all the multi- the independent economy and policies of national companies/, whether it is ITT or any other countries. But again, the next day, Mr. other company. We are concerned with ITT Ford said that the CIA should be allowed to because they -are the people who sold us an carry on its legitimate work abroad, which absolutely rotten cross-bar system which will mean murder or attempt to murder Dr. disrupted our communication. The matter has Castro or attempt to stage coups d'etot in been raised in this House during the last six various parts of the country. Therefore, I strongly resent this. Unless this Bill is years. This agreement with the ITT has been very seyerely commented upon by the Public drastically amended, it will not be able to Accounts Committee. Therefore, Sir, if we do tackle the problem. I have mentioned this in not tackle those multi-national companies and clear terms in my note of dissent. I am the menace they pose, how can this Bill quoting. achieve the purpose and the objectives which "In the course of series of meetings of we are aiming at and about which we have no the Foreign Contribution (Regulation) Bill, quarrel? We want a very strong and very strict several members quoted extensively from Bill which will give drastic punishment to various books and documents regarding these who dare to take money from abroad, CIA and the activities of the multinational whatever may be the shape or form, in order to corporations. With tremendous financial pollute the economy and the politics of this power at their command and their firm grip country. Therefore, Sir, I do not know what over raw materials and minerals and other was the intention which forced the resources of the Third World countries, Government to be so soft to these multi- they are continuously trying to maintain national companies. It is good that Mr. Pai has their hold through massive financial just come. It may be of interest to him. He is support to anti-democratic elements and all the time trying to find some collaborators have become States within States. Under abroad in order to produce, I was told, tomato cover of trade and business, they attempt to saucs. Perhaps, we do not have an indigenous infiltrate into every layer of society and technique to produce tomato sauce. I resort to every possible means including remember a cartoon by Mr Abu in the 'Indian financial assistance to influence the politics Express.' This was about an Indian rocket and of the countries where they operate. They there was a comment by Mr. Abu which said are the biggest single menace to 'We have been able independence and democratic 155 Foreign Contribution [ RAJYA SABHA J (Regulation) Bill, 1973 156

[Shri Kalyan Roy.] fighting giant multi-national companies like forms of Government which are trying to Lever Brothers, ITT and some drug delink themselves from the stranglehold of companies, they can bring capital from abroad. colonial economy. There is no restriction on the flight of capital from one country to the other. It is the inherent The Foreign Contribution (Regulation) right of a Capitalist to help his brother Bill, 1973, as it has emerged out of the capitalist abroad; it is the inherent right of 'a Joint Committee, will not be able to tackle multi-national company to bring capital from or control or prevent the inflow of foreign cut-side. There are hundreds of multinational money for dubious and shady and outright companies today functioning in India. The anti-national activities." biggest multi-national company is Guest, Keen "While the multi-national corporations and Williams. If there is a strike or lock-out in have been mentioned, no stress has been Guest, Keen and Williams, they can bring any given on their activities and they will be amount of money from England. The free to evade and sabotage the various Gestetner company have retrenched 62 people provisions of the Bill. There should be recently; there was a strike. They do not suffer most stringent provisions for them. And at all financially because the entire this Bill is totally inadequate to deal with international money is at their disposal. So, I, them." as a trade unionist, I, 'as a worker, am put to Mr. Mohsin should understand. We are disadvantage. I am not allowed to accept absolutely with you regarding the aims. We solidarity fund for fighting the anti-national have been shouting for the last 20 years that activities of the muli-national companies or for the right reactionary parties, the Maoist fighting the anti-labour activities of the multi- parties are being financed from abroad in the national companies. But the capitalists of this name of religious activity or in the name of country, along with their brother multi— social activities or in the name of educational nationals, are allowed to accept and receive as activities. These agents of the CIA, the much capital as they want in order to subvert various so-called political parties which are my economy, in order to liquidate and attack political parties only in name, have other the trade unions. The Bill has no answer to aims. They are getting help from various this. Or, rather I should say, the Government other missions abroad So, the Bill as does not want to face the situation. I will presented today, will not be able to tackle the accept the Bill whole-heartedly, without any problem. reservation, without any dissent, if you stop the flight of capital from one country to the My second point is this. other to boost the dying, disintegrating MR. DEPUTY CHAIRMAN: You have capitalist system. How does the capitalist finished only one point, is it? SHRI KALYAN system survive? It survives by inter-locking, ROY: We have been discussing this Bill for by international cartel system, by international nearly two years in the Joint Committee. Take trade pacts, by international division of market a strike or take an accident in a mine for and when one company is in danger the other instance. Three hundred and seventy-eight companies import capital from abroad. If you people were killed in the Chasnala disaster. would have been sincere to tackle this menace There we are having a court of inquiry to of foreign contribution, you would have appli- ascertain the reasons for this accident. AH the ed the same stringent measure to restrict the bodies have not been found; there is confusion inflow of foreign capital into this country but about this. People have lost their fathers or there you are husbands or sons. Are they entitled to receive funds from the miners' unions of other countries or not? When we are 157 Foreign Contribution [ 9 MAR. 1976 ] (Regulation) Bill, 1973 158 divided or you have no policy at all, or the from abroad for conducting the strike. With this policy as I see, the way the Ministry of attitude and this Bill, I am afraid attempts will be Industry and Civil Supplies is working, made, may be not by Mr. Mohsin but by many inviting foreign capital in this country. What is others, to refuse the trade unions to receive the this foreign capital? It is nothing but a disguise fraternal help which is the right which is being of CIA infiltrators. What was the job of Mr. accepted throughout the world. When the Italian Freeman who visited the country a few months workers strike the French workers support, when back and bluntly stated that the multi-national the French workers strike, the British workers companies were doing a good job and they support, when the Japanese workers strike, the should be allowed to do their job? In other Chinese workers support i and when the Indian words, they should be allowed to bribe the workers strike, ; they have the right to receive political parties of this country, they should be fraternal help from the brothers abroad, in the allowed to bribe the Ministers of the country, same way as the capitalists are allowed to they should be allowed to bribe the receive, loans and capital from abroad. This Bill bureaucrats of this country which they have is discriminatory. been doing so long, tl is not a revelation as some people or some Members may think. It is a hard fact, reality. Without tackling the Sir, unnecessary restrictions have been put on problem of foreign capital you are restricting trade unionists and journalists who wish to go the fighting democratic trade unions to accept abroad. You know the condition of the trade fraternal help which they are justified to unionists in the country, even the condition of the accept. Long before Indian became free, when poor journalists in the country. You know the the working classes and the democratic masses condition of hospitals in this country. People go were fighting the British imperialism, when to hospital when they are sure they are to die, Mr. M. N. Joshi, one of the outstanding trade very few people go to hospitals and the nursing- union leaders of this country, received homes are reserved for friends of Mr. Pai who are thousands of pounds from abroad, the British mainly belonging to multi-nationals. If a trade Government objected and refused Permission unionist is suffering from T. B or cancer and if he to the late Shri M. N. Joshi to accept the is asked to go to a hospital abroad, naturally the money on the ground that it may be utilised by Bill will come i in the way. It will give a the textile workers of Bombay which is sweeping power to the bureaucrats to prevent dominated by the Communists. Mr. Joshi met other political parties or trade unionists to receive the Governor and ultimately public pressure proper treatment, medical or otherwise. forced the British Government to retreat and Mr. Joshi on behalf of lakhs of textile workers of Bombtey accepted thousands of pounds. Sir, I am afraid. Sir, the Bill may look innocent when there was a strike of the railwaymen in but it is not so innocent, it can be twisted. Kharagpur in the beginning of this century, when the mighty British regime was ruling over this country, money came from abroad, We wanted a small Review Committee to from the in order to help the screen the applications, but unfortunately Mr. striking workers. Mr. Giri felt the same Mohsin was not prepared to accept that. problem. Ultimately the British Government Similarly, we wanted some kind of a had to yield and Shri V. V. Giri was able to Parliamentary Committee to be there to accept the money which came go> 159 Foreign Contribution [ RAJYA SABHA (Regulation) Bill, 1973 160

[Shri Kalyan Roy.] MR. DEPUTY CHAIRMAN: I am not certain whether he is going to remain 'half'. into various aspects of the implementation of the Bill because there is a danger of misuse of SHRI F. H. MOHSIN: And out of the three power. Today this party is in power, tomorrow some other party may be in power j the Members who have spoken, two were Government may misuse the power. Whether members of the Select Committee also. Mr. it is the Communist Party or other political Tyagi and Mr. Kalyan Roy were members of parties, they all have expressed their fears in the Committee and their advice was available this regard. Similarly, the trade unions. Not to the whole Committee, and their opinion only the All India Trade Union Congress, but was also taken during the deliberations. also the Hind Mazdoor Sabha and even the INTUC have expressed an apprehension with I am glad, Sir, that the measure has been regard to the way the Bill may be imple- accepted by all sections of the House. Mr. mented and may be used once a trade unionist Tyagi has made some suggestions which he goes abroad and receives fraternal help to made even at the Select Committee stage also. fight the evils of capitalism in the country. So The first point that he made was that money •there also the Bill needs a drastic sent by relatives should not attract this Bill. modification. Sir, there is already a provision in clause 8 (e) of the Bill which gives sufficient room for any relative to send money to a relative in And, lastly, before I end, I would again India. He may be of Indian origin or not. That plead with the hon'ble Minister that let there is a different matter. But a relative can send be, as I said, a small committee to screen money to the extent Provided in the Bill. various applications which may come up as Clause 8 (e) says: per the provisions of the Bill, because I may again remind him that absolute power corrupts absolutely. This Bill gives absolute "8. Nothing contained in section 4 shall power not to the Minister but to the ordinary apply to the acceptance by any person IAS officer at the Collector level who, in his specified in that section, of any foreign whims or with a mala fide intention will do a contribution, where such contribution is mischief which may be misinterpreted by the accepted by him, subject to the provisions people of the country who want the Bill to be of section 10,— passed, but not in the present form.

* * • Thank you. (e) from his relative when such foreign contribution has been received with the SHRI F. H. MOHSIN: Mr Deputy previous permission of the Central Chairman, Sir, I am very thankful to the Government." hon'ble Members who have taken part in this debate and have supported the Bill. All the three Members—may I say three and a half So, all that is required to be done is that he Members because one Member spoke only for has to take the previous permission of the a few minutes—have supported the measure. Government. There is no restriction on getting money from a near relative—and a relative 161 Foreign Contribution [ 9 MAR. 1976 ] (Regulation) Bill, 1973 162 has been denned in the Companies Act of rect in saying that so many organisations or 1956 and the definition is quite wide; it institutions receiving foreign assistance or includes not only sons and daughters but also contribution for some purpose, for either collateral relatives. He could receive money religious or economic or any other for a bona fide purpose. Again there is a purpose divert such funds for other purposes, proviso, which was included in the Select which has created havoc in political life. Of Committee stage: course, Mr. Kalyan Roy and Mr. Khan were very right when they said that foreign money which was given for a good purpose was some- "Provided that no such permission shall times being diverted for other purposes, be required if the amount of foreign even for creating agitations. Sometimes, contribution received by him from his money was used even in election campaigns relative does not exceed, in value, eight and for subversive activities. So, hon. thousand rupees per annum and an Members' concern in this respect was very gen- intimation is given by him to the Central uine. In fact, in 1967 the US press itself gave Government as to the amount received, the out so much information about the CIA source from .which and the manner in activities. Even now we have been hearing which it was received and the purpose for quite often about the CIA activities in so which and the manner in which it was many spheres—through universities, through utilised by him." newspapers, through political parties and in Up to Rs. 8,000, he may not even take some other forms in the political party prior permission. All that is required is that he organisations. "We want to keep them away has to intimate later on to the Central from such foreign influence so that our Government how much money is received for democratic institutions, our parliamentary what purpose and how he utilised it-So, the institutions are kept away from foreign fear that there may be difficulty in receiving influence; othrewise, they would be money from relatives is not well founded. discredited by the receipt of foreign contributions in this way. A trade union, if He was mentioning that trade unions should at all it receives money, should utilise it for also be covered by this Bill. Of course, Mr. the economic betterment of the members Kalyan Roy had a different view. A trade of that trade union. As long as it utilises union may be exempted though we have not these funds for the economic betterment of the used the words 'trade union'. There are trade trade union workers, there would not be unions which are affiliated to political parties any objection to giving permission. and there are trade unions which are not Normally, trade unions which are not affiliated affiliated to political parties. If there are or- to any political party may come under clause 6. ganisations which are of a political nature or It is only sufficient for them to give an which are affiliated to political parties, clause intimation and maintain their accounts. 5 of this Bill may be attracted. So, they may That is all. The accounts should be available have to take permission. It is not that we ban open to the public, to the Government, so them from receiving any foreign assistance. that if at all any suspicion arises, they can All that is required is that the money received check the accounts. Therefore, there is no for a particular purpose, for a bona fide pur- difficulty in regard to genuine organisations which might receive foreign assistance pose, for a legal purpose, should be utilised for that purpose only; it should not be diverted to for a genuine cause. Mr. Kalyan Roy will other purposes. Hon. Members are very agree with me that there are organisations in cor- name only- they may re- 1333 RS—6.

163 Foreign Contribution [RAJYA SABHA ] (Regulation) Bill, 1973 164

[Shri F. H. Mohsin] other payment has been, or is being, ceive funds but they may use them for some received by him." other purpose, for subversion, for creating discord and for creating internal disturbances. What is required is that an intimation has to There is need for checking such things also be given. It does not stop any student from and every effort is made through this Bill to receiving scholarships. So that fear of Mr. see that such money is not diverted to other Tyagi is also not well founded. purposes. Sir, he also mentioned about the foreign Sir, clause 10 is a very omnibus clause. If literature that is coming into India and gifted foreign funds are received by any to some political parties or that sort of thing. organisations or persons and if they are not We cannot altogether prohibit useful literature utilised for a genuine purpose but used for on science and technology coming into India, but if there is any information as to the misuse subversive purposes, we can control such a of such kind of literature supplied from thing through clause 10. foreign countries, certainly we can take action. It is an omnibus clause. It says: There are sufficient provisions in this Act to prohibit such receipt of such foreign literature. "The Central Government may— Mr. Kalyan Roy, though he took a sufficiently long time, dealt with only one (a) prohibit any association, not specified in section 4, or any person from important point, that is, multi-national accepting any foreign contribution- corporations. Perhaps he bad in view the original Bill which did not contain any clause (b) require any association, specified about multi-national corporations. But at a in section 6, to obtain prior permission of later stage, during the Select Committee stage, the Central Government before accepting it was included. I may point out to him that any foreign contribution-". clause 2 as now reported by the Joint Committee contains a provision already. On Sir, all these provisions can take care of page 4 of the Bill, you can see, Mr. Kalyan any situation that may arise. Roy, that clause 2 (1) (e) (v) says:

Mr. Tyagi also mentioned that there may "foreign source includes a multinational be hardships for students in receiving corporation within the meaning of this scholarships. Not at all. Clause 7 is quite Act." clear. It gives wide scope for receiving of scholarships but regulates the receipt of So, if any money is received . . . scholarships also. It says: SHRI BHUPESH GUPTA: There are two papers here. You should read them. Here is "Every citizen of India receiving any Time—"The Big Payoff Lockheed". And scholarship, stipend or any payment of a Newsweek: "The Lockheed Scandal." Now like nature from any foreign source shall this is how money is spent. If I were to send give, within such time and in such manner your Bill to the American Senate or the as may be prescribed, an intimation to the Congress, they would return it. Perhaps they Central Government as to the amount of the will charge us something for troubling them scholarship, stipend or other payment because these things are not covered by it at received by him and the foreign source all. Yet, this is how it is financed. from which, and the Purpose for which, such scholarship, stipend or 165 Foreign Contribution [ 9 MAR. 1976 ] (Regulation) Bill, 1973 166

SHRI F. H. MOHSIN: I can only say that for security reasons we cannot divulge all under these provisions any assistance from a these things. To a great extent the Bill will foreign country, if it is diverted for any take care of such remittances from abroad to purpose other than a bona fide purpose, could such organisations which woud divert the be stopped. We have enough powers under money or moneys reveived from foreign this Act. countries for other purposes such as creat-ting disturbances, subverting democratic and Parliamentary institutions, etc. The vital Sir, the fear of Mr. Kalyan Roy was not organs of democracy . . . well-founded. It has been mentioned already in the Joint Committee that multi-national SHRI BHUPESH GUPTA: May 1 make a corporations within the meaning of this Act request to you? are also covered; they are also considered as 'foreign surce'. Any money received from SHRI F. H. MOHSIN: Why not? these multi-national corporation3 would also be covered. SHRI BHUPESH GUPTA: My request is this. Will you kindly ask your Mission in Washington to make available for us a copy SHRI BHUPESH GUPTA: The Minister of the report of the Intelligence Committee of says that Mr. Kalyan Roy's fear is not well- founded. Is it ill founded? the Congress? This is a 28-page report published in "Village Voice"—an American Journal. It will be very useful to have it here. I would request you to ask your Mission in the SHRI F. H. MOHSIN: But there is United States to get hold of a copy of that already a provision to stop money journal and end it here. You can multiply it coming from the multi-national corpo s or put it in the Library. This give very good rations. Then, Sir, he was right in s information as to how American money saying------operates in foreign lands.

SHRI BHUPESH GUPTA: Otherwise I would have asked the Deputy Chairman for sending SHRI F. H. MOHSIN: Think you for the the Minister to the United States to read the information and suggestion. The Bill, as it is, Senate intelligence committee's report which will take care of all such foreign assistance has revealed how American money operates in coming t0 India for all purposes. The foreign countries-SHRI F. H. MOHSIN: That suggestions made by Shri Roy and other is why this Bill has been brought. I can only Members in the Select Committee have by assure the House that the Bill will take care of and large been accepted. I do not think there is any reason to fear that foreign money will any such sources of foreign assistance coming create such disturbances in thia country. into India. And for all these agitations it is used. We are quite aware of that. We are aware that some sensitive areas receiving SHRI BHUPESH GUPTA: You have funds from foreign countries. Not that we are started the new year with great optimism. unaware of it. Foreign intelligence agencies like the CIA have given many things out. It does not mean that we are not aware of it. We SHRI F. H. MOHSIN: We have to. are also aware who are receiving, which Government is vigilant and will take care of organisations are receiving and diverting these agencies like CIA and will see funds. But 167 Foreign Contribution [ RAJYA SABHA ] (Regulation) Bill, 1973 168

[Shri F. H. Mohsin] that our country is 2. "That at page 1, line 1, for the word well guarded. Sufficient vigilance is 'Twenty-sixth' the word "Twenty-seventh" maintained. be substituted." Sir, I again move that the Bill may tie The question was put and motion was taken up for consideration. adopted, MR. DEPUTY CHAIRMAN: The MR. DEPUTY CHAIRMAN: The question is: question is: "That the Enacting Formula, as "That the Bill to regulate the acceptance and utilisation of foreign contribution or amended, stand Dart of the Bill." The foreign hospitality by certain persons or motion was adopted. The Enacting Formula, association, with a view to ensuring that as amended, was added to the Bill. parliamentary institutions, political as- The Title was added to the Bill. sociations and academic and other voluntary organisations as well as SHRI F. H. MOHSIN: Sir, I move: individuals working in the important areas of national life may function in a manner "That the Bill, as amended, be consistent with the values of a sovereign passed" democratic republic, and for matters connected therewith or incidental thereto, The question was proposed. as reported by the Joint Committee of the Houses, be taken into consideration." SHRI BHUPESH GUPTA: As far as the principle is concerned,"~hobody can be The motion was adopted. opposed to it because nobody would like the intrusion f foreign money to subvert our MR. DEPUTY CHAIRMAN: We shall 0 democratic institutions to intefere in the now take up clause-by-clause consideration of internal affairs of our country, much less the Bill. subsidise the counter-revolutionary Clauses 2 to 32 were added to the Bill. movements or campaigns for destruction, as we have recently witnesed. On that we are ab- Clause 1—Short title, extent, application solutely clear. Therefore, we are absolutely at and commencement. one with the Government or with anybody in the country who wants to put a stop to this SHRI F. H. MOHSIN: Sir, I move: kind of an-intrusion of foreign money in order 1. "that at page 1, line 6, for the figure to bring about destablisation of our national '1975' the figure '1976' be sustituted." life. The question was put and motion was [The Vice Chairman (Shri Lokanath Mishra) adopted, in the Chair] MR. DEPUTY CHAIRMAN: The question is: In view of the present situation especially, "that clause 1, as amended, stand part of through which we have recently passed it is the Bill." necessary to have such a fool-proof measure and I entirely agree. But the question is The motion was adopted. whether the Bill as it is conceived, whether Clause 1, as amended, was added to the Bill the provisions of the Bill as they are now, Enacting Formula would meet the requirements of the situation SHRI F. H. MOHSIN: Sir, I move: and this is our view and this is our worry. Our worry is not that we do not need a law of this kind. Cer- 169 Foreign Contribution [ 9 MAR. 1976 J (Regulation) Bill, 1973 170 tainly, we need a law of this kind. is said that the American Presidential Certainly, we want stringent measures. elections would be affected by the dis- Certainly, we would not like dollars closures about the CIA activities and the coming in their millions and billions in American financing of such subversive order to destroy the future of this country and counter-revolutionary forces in other in blood and tears. We would never like countries and also in our country with a such things to happen. Surely, we would view t0 bringing about destablisation in not like the foreign funds to come here this nation or with a view to bringing and to boost a fascist campaign in order about changes which would serve the that the country's democratic institutions interests of American imperialism. Sir, may be done away with and a counter-re- the Japanese Government is shaking volutionary rightist regime is installed in today because the multinational the seats of power. Of course, we would corporations have been used to finance not like all those things and that goes some politicians of the right wing in order without saying. But my complaint against to bring about changes in the Japanese the Government is that the measures political life. Not that it is good but the which it has brought now falls too short Americans are not satisfied even with of the requirements on the one hand and that. They want everything their way and is liable to be misused by the bureaucracy they want everything to go with them the and others on the other even against the whole hog. Therefore, one does not know legitimate movements in the country. Sir, whether the present Government would this is our position and let there be no last. There i crisis there. In the Japanese mistake about it because this great nation s Parliament, Sir, there have been outbursts of ours cannot brook the idea of its being and noisy scenes somewhat in a worse interfered with by foreign agencies in the manner than what we have experienced coutry against the wishes of the people, here. It is because their very legitimate against the interests of democracy and against the interests of the unity, anger has been expressed by the socialists Sovereignty, freedom, independence and and the communists and other democrats against the American intrusion-with their the future of the country. We are on all fours with the Government if the big money bag in order to influence the Government wants to tackle this problem. Japanese politics. In Turkey, a situation But look at the provisions of the Bill. Sir, has arisen in which you find that some this is a measure which we are multinational corporations—the Lockeed considering and passing today against a have got their agency there—are finan- particular international situation of which cing the wrong type of politicians, aC we have a national projection within our cording to them, who are absolutely the own country. What is the international stooges and agents of America. Now, Sir, situation today? Wherever you go, I have two magazines with me. If I had whether it is Angola or whether it is known that this Bill would cover many Europe or whether it is any other part of such aspects, I would have brought with the world, you will find that the me more material. In most of the Americans are spending millions and countries this is going on. In Saudi millions of dollars under various covers in Arabia, it is going on, in Japan, it is going order to have regimes which are as the on, in Iran, it is going on and, in Italy, the Prime Minister, Shrimati Indira Gandhi, disclosures are there and the right wing put it pliant regimes or in order to subvert politicians have b'een given by the and destroy the democratic and Lockheed people about six million dollars progressive regimes. But this is what is or so and much more has been given going on Today, the scandal is so much earlier on the condition that the money out that the Americans are disturbed should be utilised in order to prevent a about it. It progressive government 171 Foreign Contribution [RAJYA SABHA] {Regulation) Bill, 1973 172 [Shri Bhupesh Gupta] It is even suggested that Queen Juliana with communist participation coming into may have to resign as a result of these existence in Italy although the Communist disclosures, because her bed-mate is one Party ha3 polled 33 per cent of the Italian who takes money from the United States votes in the last elections. Now( it is clear of America, himself being a very rich that the problems of Italy cannot be man. What is the guarantee, where is the solved without the participation of provision in this Bill that such things will Communists in the Government. The be ore-vented? Do you think they will Americans are saying today that by using make an announcement in newsapers that their multi-national corporations, the such payments are being made? It has Italian Communist Party is not in a come too late after 10 or 15 years. Many position, or for that matter, any party is things are coming out. This is one of the not in a position to form a Government. things which has been established after There is a minority Government in proper investigation by a Committee of existence in Italy which has got the American Congress. Such things are sufference of the Socialist Party. This is happening.. (Time Bell rings). how it is functioning today. That Government has got 262 votes in a House Why are you rining the bell? I of over 600 Members. Such is the am finishing. position today. In which world is my friend, Mr. Sir, I give one instance. Some day I Mohsin, living? Here is a report of the read in a newspaper report that Philips American Intelligence Committee of the had bribed or given some money to American Congress, which has been Indian officials. I have written letters to published in the 28-page supplement of an the authorities concerned. What has American magazine—a revealing report happened t0 them? Has there been any which is supposed to be given by the investigation? A newspaper report American Congress. You would have appeared in'fhe 'Indian Express' that some noted it, but still I bring it to your notice. concern has given some money to an This is about Bernhard, the Netherlands Indian. Who is that Indian? I should like Prince. He has been called to Queen's to know. These things are not known consort. He is the Queen's husband. I do immediately. They come to notice after not know what you would called him. In some scandal bursts. Only then we come the Old Victorian days we used to call to know such things. them like that. Well, that gentleman gets an annual subsidy, he is provided with a Now, Sir this is nothing new. It is well government salary of $ 300,000. This is know that the Marshal Plan came into what it says: existence immediately after the Second "Abroad, the most startling ac- World War. The Americans made it a cusations involved. The Netherlands' condition that if the Italian Communists Prince Bernhard 64, the urban, hard- and the French Com-munits were working husband of Queen Juliana. included in the Government, France and According to statements obtained by Italy would not get Marshal Aid. As a sub-committee, Bernhard was the result of this blackmail and pressure, the intended beneficiary of $ 1.1 million Italian Communist Party and the French Communist Party—both had their Deputy in the '60s and early '70s from Prime Ministers in the respective Lockheed, presumably for services Governments—had to be expelled from rendered in connection with the the Government. Again, in 1948, the Dutch purchase of 138 starfighter elections took place in Italy. The jets from the Colibonnia based com Americans made it known that if the pany ---- " 173 foreign Contribution [9 MAR. 1976] (Regulation) Bill, 1973 174 communists were returned to power ing subversive campaigns? How are you and if the Italians voted for the com going to stop them? Yes to some extent, munists, the Marshal Plan economic if they decLare openly you can regulate aid would not be available to them. them. But otherwise you will not be able Is it not known to you? This is not to stop them. What is the guarantee that only a question of pressure. Either you moneys will not be passed under the withhold money or you bribe with cover of collaboration agreements? I give money in order to pressurise and you the information that at the time of blackmail. What is happening in our Congress split, Morarji Desai who was country today? A lesson must be the Deputy Prime Minister then, had re- learnt. The other day, the Americans ceived money. It was about that time, the declared that the committed aid of Government should know it and the 75 million dollars would not be given Government knows it I know. The to India. Well, it is a very small Boeing concern had an agent in Bombay. amount anyway. But an announce That agent was financing Morarji Desai. ment was made about it because We know it. Is it not known to you? That Indira Gandhi had made speeches is one of the reasons why you said that which the Americans did not like. | Boeing should not be got because a part Therefore, the solemn commitment— j of the commission given to the Boeing we have our views on that—will not agent by the Boeing concern could be be fulfilled and the money will be j funnelled into the coffers of the rightist withheld by them, because we do not ! forces. I had mentioned it then and I men- speak what the Americans want us / tioned it today again. The son of Morarji to speak. Desai was connected with that Boeing Agent. Was it not known in the leading 1 circles of the Government that the funds that will be received as a commission from the Boeing concern will find their Sir, the multi-national corporations are way— a part of them at least—into the being used. What is the guarantee that the coffers of some rigist elements in the multi-national corporations, from their ruling party or in other parties? Such is accumulations here, will not give moneys the position. to political parties and reactionary forces? THE VICE-CHAIRMAN (SHRI Will they announce it in the press? Will LOKANATH MISRA): Please wind up. they come to you to make a declaration SHRI BHUPESH GUPTA: Let me that they have got money from the ' I.T.T. speak. There is no other item. or Union Carbide or Philips or ! some other concerns or from some countries? THE VICE-CHAIRMAN (SHRI Will they declare if they give money to LOKANATH MISRA): There is a remove the Prime Minister from power Resolution. or to fight for that matter, Rajnarain's SHRI BHUPESH GUPTA: I am election peti- J tion? Are they going to finishing. Sir, I have given this example declare it? They can import whatever and I can give many more examples. I do funds they like. They can spend them as not wish to give them now. All over the they like. Do you know that many of them world, Americans are using the multi- are making overhead charges telling the national corporations from passing funds Government that they have spent so much to the reactionary forces. We cannot money on rents and j other things? think of one counter-revolutionary Everybody knows that j a part of the funds movement in the world today which has is being utilised for subversive purposes. not been financed clandestinely by the Some of the I moneys received American CIA, and other Amercian from American sources have been agencies. This is something which I am disclosed. Who I does not know that not say- some of the ins- 1 titutions like the Foundations and so ' on are receiving moneys and such funds are being utilised for operat- I 175 Foreign Contribution [RAJYA SABHA] (Regulation) Bill, 1973 176 [Shri Bhupesh Gupta] ing. This is need them. It is an accepted way 01 something which the Americans international life today. There are themselves are saying publicly. It is on organisations which are maintained by the television and in the American press. public and State donation. May I ask, Mr. There the American President has now Mohsin, how you would have felt about asked the CIA not to kill people abroad, this? Last year, in December, you had an not to indulge in political assassination. international conference against fascism Political assassination was their where delegates from 50 countries came, programme. Today it is admitted by the and they are looked after by us the Indian, American President, Mr. Ford, in a new people the Congress Party, the communist directive to the CIA. They have been Party and various organisations. They asked not to carry out political took our hospitality. Are they to go to assassination in foreign countries, their Government to take permission admitting therby that political saying, "We are going to India; give us assassination had been committed. permission so that we can take the Money is the secondary thing. Those who hospitality ol the Indian ruling party and asked to assassinate will give money to other parties who had been supporting us the assassin for assassination. Everybody and whom we propose to support in their knows how much money has been spent great struggle"? Would they have come in . Go there and find out. that way? No. They would not have Was there anything known to Mujibur come. You are the beneficiaries also. The Rahman? At least, to the public nothing international conference was held. They was known. So this is another problem. came, they supported your action against the right-wing forces, and they stood by you. They met the Prime Minister and the Now, Sir, this is my other point and I Prime Minister was good enough to will finish. Sir, here is, for example, an receive them. The Congress President artist sitting. Suppose he is invited by hoisted a dinner in their honour. It was a some artist in some other country or an voice of progress, democracy and peace artists' organisation. Well, he is going against imperialism, neo-colo-nialism, there for subversion of Indian democracy fascism and counter-revolutionary forces. or for projection of Indian cultural life, I If you put such a conference into such a should like to know. Why should he be kind of harassment of rules and on par with a man who is an Anand regulations, what will happen, I should Margi and others? They will be equal. like to know. Is it not a fact, Mr. Vice- We are all equal in the eyes of this law. Chairman, that in 1973, we all of us, He, me and others are all equal, and on more than one hundred, went as members the same footing; the Anand Mar-Sis, of a delegation to the World Peace Ananda Murti, the RSS leaders and Congress in Moscow where the Indian others are equal. They will have to make delegation was the biggest delegation and the same application which we will have won applause from all sections of the to make or we will have to make the Congress representing more than 110 same application which they will have to countries and hundreds of thousands of make. We shall all stand in the same line. international and national organisa-4 P.M. Why? I should like to know. Why? Is it tions? Are we to go and fight and say: the way to pass this measure? Today, you "No, we are going to the Peace Congress must make a choice whom you are to champion your cause, your accepted fighting. policies, accepted policies of the State and therefore give us your permission so that we can be the guests of the Soviet Peace Committee"? Is it not an insult to Sir, surely, there will be movements us? Is it not an insult to the Soviet Peace and organisations which are having international connections. You 177 Foreign Contribution [ 9 MAR. 1976 ] (Regulation) Bill, 1973 178 i Committee? Can you not trust a friendly nal support not only for us but also for organisation? Therefore you must draw a our brethren in Bangladesh. If we have to distinction between those who are £0 now under this meausre, we have to friendly and those who are hostile to our get the sanction of the Government. First country; those who stand by you in hours of all, we have to-apply and find out who of crisis and those who let you our hosts will be. We have to find it out down.(Time Bell rings). I will just now and then place their case before the finish. Government and get the sanction. Is it the way to run the affairs? Sir, that is all THE VICE-CHAIRMAN (SHRI wrong and misconceived. By all standard LOKANATH MISRA): You have al- meausres prevent where you think that ready taken 25 minutes on the third you should strike. I can see many cases reading. Supposing three other Members of this type. get up and ask for clarifications. Sir, the other day I was in Moscow. I was a member of the Delegation of the SHRI BHUPESH GUPTA: Sir, you to the 25th know many Members are not here. I am Congress of the Communist Party of the speaking for all of them. Had they been Soviet Union where delegations from present, they would have spoken. more than 100 countries came, including Therefore, how, can I let down my 12-non-socialist countiries. They were colleagues? not all Communists but there where delegations from many non-socialist SHRI ABU ABRAHAM (Nominated): countries. Excuse my interruption but I would like to know how would you make this I think there were 12 or 13 non-socialist distinction between friendly countries countries or, maybe, there were 18. and other countries. From more than one hundred countries the delegations came. You have read in SHRI BHUPESH GUPTA: I am not the newspapers what has been said by mentioning any country. A provision Mr. Brezhnev in his report to the Congress could be made in such a way which about our country. You have noted it and would take care of this thing. We can the whole country has noted it. If I were to think of making a suitable provision. go now, Mr. Abu, I will have to go and file When you go to France I do not want a petition and say that I will be the guest of you to stand in the same queue with the Central Committee of the Communist the eidtor of Motherland. I would not Party of the Soviet Union, that Mr. like you to do that. » Brezhnev is a good man and, therefore, You will feel embarrassed. You will feel kindly allow me to be Mr. Brezhnev's humiliated. I will give you an example. Once guest. A Deputy Secretary will see and there was a proposal for a peace delegation. find out by referring to Who's Who who Eighty-five or so applications were chosen by Mr. Brezhnev is and as you know what India but Mr. Morarji Desai, the Finance the Secretaries do, he may confuse. I know Minister and the Deputy Prime Minister, said of a Parliamentary delegation in which no, he would not allow,. Then we had to met there was a Member of this House. I do the Prime Minister. It was a delegation in the not want to name the Member, a very national interest. Ultimately, the Prime eminent Member, who was occupying Minister in-tervend and the delegation could the Chair you are occupying. When he go. - Such kind of interfence can take place by was proposing a toast, he said: "Now I a ministerail officer. We do not know who will propose a toast to Marshall Lenin." Then be handling such a matter. Take, for instance, everybody was taken aback. Lenin the time of Bangladesh liberation. At that time was not a Marshal. When he was asked we went in a delegation in order to explain our why did he say 'Marshal Lenin', he stand and secure internatio- said—he is no more alive 179 Foreign Contribution [RAJYA SABHA] {Regulation) Bill, 1973 180 [Shri Bhupesh Gupta] and, therefore, I would the assistance came during the British days. not mention his name—he said: "Stalin was Even the British did not stop it or question it. a Marshal; Lenin must also be Marshal." Such They received the assistance. When Bal are the people. You can understand, a person Gangadhar Tilak was arrested, Bombay workers from the South occupying your Chair did not went on strike and they were prosecuted and know that Lenin was not a Marshal and in a for- resistance came from the international working eign land he toasted to Lenin as Marshal Lenin. class movement; the trial was going on in Everybody was taken aback. You can which Nehru took interest and I think he was imagine what will happen here when the the President of the Defence Committee where Deputy Secretaries and others—some financial assistance to fight the British in the Deputy Secretaries are very knowledgeable- law courts came from the British working class handle such matters. So, before we go to apart from the fact that the British Moscow, we have to go to these officials and representatives of the working class were in satisfy them that we are a bona fide delegation the dock along with comrade Dange and others. going to a friendly country; our host is the Such is the tradition. Why are you not Central Committee of the Communist Party taking them into account? Today we are a part of the Soviet Union of which Leonid Brezhnev of the world-wide struggle against imperialism. is the Central Secretary and then ask: "Will you You cannot win a struggle alone neither can kindly give us the permission to go there id be others do. Mutual help, mutual co-operation, his guest?" And then are we • _ go and tell mutual assistance and mutual understanding is Brezhnev: "Comrade J Brezhnev, we have needed in various forms, as you know very come here having got the permission of the well, in order to fight subversion of the Government of India and you are qualified to be CIA. and the American imperialism and our host". This is an absurd thing. I think this is other enemies, external as well as internal. an absurd thing that you are doing. Well, internal enemies we will deal with Therefore, you must try to correct it; you must internally. What is worng there? If the CIA, discriminate in such matters as long as you are supposing wants to bring into power the right in power. When others come to power they wing forces and suppose the American will have their own way, I know. But we are not working class or some other sections send concerned with them. You are on the right side money to those who are resisting these right as far as international things are concerned. wir.g forces in support of their struggle, why You are on sound lines. Why should you should that be questioned? I should like to pass such measures, I should like to know. know. Why should that be subject to scrutiny? Now. Sir, ... THE VICE-CHAIRMAN (SHRI THE VICE-CHAIRMAN (SHRI LOKANATH MISRA): I hope you will wind LOKANATH MISRA): I think you have up now. driven home your point very forcefully. SHRI BHUPESH GUPTA: Sir, you do not know how to wind up.

SHRI BHUPESH GUPTA: Workers have THE VICE-CHAIRMAN (SHRI a right. If the workers go and strike, it is the LOKANATH MISRA): At least you should duty of the international working class to help know. Please wind up. them in their struggle, in famine conditions and other times. To Mahatma Gandhi SHRI BHUPESH GUPTA: In the last few days you have not been speaking. Evidently you have forgotten the style of winding up. 181 Foreign Contribution [ 9 MAR. 1976 ] (Regulation) Bill, 1973 182

Therefore, I say the purpose of this measure the subversion of our independence and that you have in mind, will not be served. On democracy. the contrary, those who want to do the under hand business, they will carry on under- invoicing and over-invoicing; secr|et funds will come and go and you will not be knowing SHRI F. H. MOHSIN: Mr Bhupesh about it. Multinational corporations will be Gupta has made a point about foreign distributing their profits; they will employ hospitality that is extended to certain people. They will do it otherwise also. They sections of the people. Sir, restric will make the money available; they will tions are placed only on Members of corrupt the officials. If they are there to Legislatures, office-bearers of politi corrupt even the husband of a queen of cal parties, Government servants or Netherlands, you can very well understand employees of corporations. What is that they will do so to very many people here required of them Is, while visiting including some in the administration of the any country or territory outside country. India, if at all they have to accept any foreign hospitality, they have to take the prior permission of the Cen You have not covered all these things. Our tral Government A point has been objection is to the absence of certain provisions. made that we have not made out any Of course, some of the provisions are good. I am distinction between friendly coun not opposing them. Some are good and we should tries and others. It is very difficult support them. But these are very inadequate. It to make a mention in the provisions will not serve the main purpose. On the contrary, of the Bill itself That is why it has it will lead to harassment in genuine cases. I wish been stipulated that permission has the Government had given us some more time. to be granted by the Government. In Even if it had come from the Joint Committee, every case, the Government will take we could have been given some more time to into consideration, who is visiting think of amendments and move them. There is no which country. Therefore, Govern harm in accepting some amendments on the floor ment alone would know of the House. But this time, Government have not about it. That is why the provision done this. We are very sorry for it. We are living has been made that Members of in the days of the American bossism. Billions, not Legislatures or office-bearers of millions, of dollars are being spent all over the political parties or Government ser world, particularly in the Third World countries. vants or employees of corporations These Americans will not be taken care of by the should take the prior permission of kind of measure that you have brought in. This is the Central Government before ac a bureaucratically-conceived measure. It will lead cepting foreign hospitality. We to needless harassment of people and also misuse cannot make any special mention of of power in many cases. It will not ; touch the real one political party and leave out guilty people. The ! heart of the problem will other political parties. Therefore, we remain unsolved, the problem of foreign money have banned foreign money coming and foreign Interference for into the hands of this sensitive cate gory of persons like candidates for elections, as mentioned in clause 4, correspondents columnists, car toonists, editors, owners, printers and publishers of registered newspapers, Government servants, political parties and their office-bearers. There is a total ban on receipt of any foreign assistance or foreign money by this category of persons. Likewise, we have put some restrictions on receipt or acceptance of foreign hospitality by certain categories of persons. I 183 Re Proclamation issued [ RAJYA SABHA ] relating to the State 184 by the President of Naanlind [Shri F. H. Mohsin] comes into effect. Why not, then, appoint a committee of Members of Parliament do not think any more improvements could who will oversee this kind of thing, be made in this direction. Sir, there is whether it is being administered another provision. Supposing a legislator effectively or ineffectively or whether or an office-bearer ol a political party there is use of misuse. Some kind of goes to a foreign country and falls ill check should be there. You are suddenly there. There is a provision introducing a new type of thing. that even without prior intimation, he can avail of any foreign hospitality and then 1 intimate to the Government that he had SHRI F. H. MOHSLX : This is not received foreign hospitality at that time. acceptable. All these points were These things have been taken into discussed in the Joint Committee consideration at the Joint Committee stage meetings and we have not made any and many improvements have been changes in whatever has been accepted made. Of course, Mr. Bhupesh Gupta and put in the Joint Committee Report. has given us some useful information in The proposal for appointing a regard to the CIA activities in various Parliamentary Committee is not countries and various spheres. It may be acceptabe to us, difficult to know how foreign money is THE VICE-CHAIRMAN (SHRI working in various fields. But efforts are being made. We have got our LOKANATH MISRA): The question i3: intelligence agencies and we have also "That the Bill, as amended be got our own sources of information. passed." Every effort is being made to see that foreign money is not utilised for The motion was adopted. undesirable activities. Certainly, I am in agreement with him when he says that in some of these cases, foreign money was mis-utilised. It was used for subversion and disruption and creating dis- STATUTORY RESOLUTION order in our own country. We have got APPRO. VING THE that information. The concern CONTINUANCE IN FORCE OF expressed by many Members now and even THE PROCLAMATION ISSUED BY before has been taken care of. Section 10 THE PRESIDENT ON THE 22ND of the Bill can take care of any situation. MARCH, 1975, UNDER ARTICLE In respect of any person receiving 356 OF THE CONSTITUTION IN foreign money, if we have got secret RELATION TO THE STATE OF information that the money is likely to be NAG ALAND FOR A FURTHER utilised for some other purpose, we will PERIOD OF SIX MONTHS WITH prohibit it. So, Government have got EFFECT FROM THE 26TH sufficient powers to take care of all these MARCH, (1976). things. I can only appeal to the Members that there may not be any THE DEPUTY MINISTER IN THE hesitancy about the intentions of the MINISTRY OF HOME AFFAIRS Government. (SHRI F. H. MOHSIN): Sir, I beg to nove the following Resolution: — SHRI BHUPESH GUPTA: Then I suggest that he should appoint an "This House approves the conti- advisory body because, when the ad- nuance in force of the Proclamation ministration comes he will not be in the issued by the President on the 22nd picture. I am not blaming you. You may March, 1975, under article 356 of the not be there by the time it Constitution, in relation to the State of Nagaland, for a further period of six months with effect from the 26th March, 1976."