Vol. 4: No. 47 MARCH 4, 1972

On Other Pages THE COMMUNIQUE COMl\IENT 2 BASIC agreement on major issues, some areas of agreement, basi 11klV' From ..Delhi points of agreement-tlhese were some of the headlines in th THE STABILISING GAME newspapers before the Sino·U.S. communique was issued. The co FROM A POLITICAL CORRES- munique will not be 'accepted as the whole truth by the Soviet bloc, bU PONDENT 4 there is nothing one can do about it because there was no Anders hanging around in Peking. Besides, both parties have pledged not CPM: YESTERDAY AND say anything beyond the communique. TODAY On the face of it, Peking has scored, though in a limited way, ov HITJ::N GHOSH 5 the Taiwan issue. The principle of One China has been accepted, all! since Taiwan is no longer in the UN, Chinese sovereignty is explic THE INDIAN BOUR- How this is to be exercised is left for the Chinese to evolve in cou GEOISIE-I 7 of time. The promise to withdraw U.S. forces from Taiwan as tensi SOME ASPECTS OF AMERI- lessens is a hard pill for the ageing Chiang Kai-shek and his men CAN tAPIT ALTkSM swallow. But it is the Americans who are responsible for the unremit R. & 9 tension in this part of Asia and it is. a fond hope that they will be Book Review a hurry to cease their <,vicious mischief. Howey,", the issue of Vietnam war, the state of public opinion in the USA, and the gro • FINANCIAL FOUNDATIONS strength of China will force them to see reason. OF THE lJRITISH RAJ About Indochina, the Chinese have supported the stand of AR]TJN BANDYOPADHYAY 13 Provisional Revolutionary Government of the Republic of South Vie INSIPID RENDERING and the joint declaration of the summit conference of the Indochin By A FILM CRITIC 15 peopl(f. What do the Americans mean by saying ttJat "thle U • States stressed that the peoples of Indochina should be allowed to ClitJpings PAKISTAN AND THE BIG termine their destiny without outside intervention"? It is an am • POWERS exerciS'e in, cynicism; but the declaration that "in the absence of a n AIJAZ AH~lED 15 tiated settlenient, the United States envisages the ultimate withdr: of all U.S. forces [rom the region consistent with the aim of self.det LET1ERS 17 mination for each country of Indochina" marks an advance in that does not refer to· residuary forces; however, the concern for 'seIf.determin Editor : Samar Sen tion qualifieS' the prospect. On Korea and Japan, both sides restated their familiar stands j PuNTED AT MODERN INDIA PRESS, 7, RAJA SUBODH MULUCIt SOUAD, well-known generalities which do not caB for any immediate action. I CALCUTTA-13AND PUBLISHEDWEEKLY is over the Indian sub.continent that both Peking and Washington ar FORGERMINAL PUBLICATIONS(P) LTD. aY SAMAR SEN FROM61, MoTr LANE., more precise in their formulation-both want the parties to withdraw Cw:trn'A-13 . their forces to their respective territories and to their own sides of til TELEPHONE: 243202 FRONTIER cease-fire line in Jammu and Kash- ahead with their plans to reLeive Mr has not accepted Hanoi's overture fbr Plir; China wants this done 'imme- Nixon, though suspicion will persist a joint front agains~ imperialism' be- diately' and also reiterates support to over the reference to hegemony. cause of its deeprooted suspicion about the Kashmiris in their struggle for The meeting in Peking will con- the Kremlin's brand of communism, the right of self.determination. tribute to the relaxation of tension, it has never meddled with Hanoi's butJ those who claim to know China Jlandling of the war and has borne There is very little in the commu- better than others will not be shaken the burden of logistics. nique to disturb other \powers, big in their belief that this relaxation Hanoi has maintained a policy of r small, except Taiwan, and India will not be at the cost of the people equidistance between Russia and to an extent. Russians can now go struggling for liberation elsewhere. China, its two big allies, and refus- ed to join the ideological struggle in the international communist move· Peking And Hanoi ment. This independent political line is rooted in military needs; it de- pends on Moscow for sophisticated Nothing has happened to confirm tion of its political line of people's gadgets and on Peking for more essen· North Vietnam's concern regarding war and has stood against any effort tial supplies of small arms and food. the possibility of understanding to compromise on it. Immediately These compelling military reasons between Peking and Washington on a·fter the Indochinese summitl, the have induced a delicate balancing Vietnam. Ever since Nixon announc- Chinese Premier said that the Chinese act and a policy of leaning on nei- ed his intention to go to Peking for people would draw inspiration from ther. But events show that its talks, Hanoi, through its news media the Vietnamese struggle and that the leadership has been over·sensitive to and spokesmen, has been saying that: struggling people of 'Indo-China Peking's moves, or rather the·thought the Vietnam problem can be resolved could look upon the Chinese main- of such moves, while much bigger only by talking to the Vietnamese and land as their reliable rear area. At compromises by the other power have nobody eire. Although these declara- the same time Peking has always been gone unheeded. This to uncompre- dons were aimed apparently at no- responsive tlOHanoi's problems and hending people, amounts to partisan- body, they served as a veiled warning difficulties in the war. Although it ship. 'to the summiteers in Peking. That the Chinese leadership was not unaware of such a possibility of Going Underground? misunderstanding on Hanoi's part was evident from its repeated efforts to assuage its undue anxiety. After Once again, there are incidents in for action. In the Alipurduar area the announcement of Nixon's intend- jails. As the Naxalites, detained on February 26 they attacked a police ed visit, Chou En-lai said categori- without trial for an indefinite period, camp guarding a railway bridge, kill. cally in the first Peking-Hanoi sum- tried to hold a commemoration meet- ing two and escaped with eight guns. mit in November last year that ing on the death of a large number There are differences over the em- ashingron could make peace in of their comrades last year in Ber- phasis on action between the Charu Vietnam only by talking to the Viet- hampur Jail, the warders clashed with Mazumdar and Ashim Chatterjee amese themrelves. The Chinese and them. One prisoner was killed and groups. The older leader is still the North Vietnamese leaders also eight others injured, accordting to said to be in a hurry to speed up the 'agI'eed on the terms of ending the officials, usually unreliable. revolution, for which guns are being war-they insisted on quick and un- In Jalpaiguri Jail, one of the four snatched, whereas followers of the nditional withdrawal of American Naxalites rearrested after they had young man, after a partial admis- troops and the ending of U.S. sup- escaped, with 11 others, was found sion of quite a few serious mistakes port to the Thieu regime. Even dead in the lock-up. This created a due to their action-orientation, now hen Nixon was talking with sensation in the town, but not much prefer the hard, long march to their the Chinere leaders Prince Siha- reaction among the political parties goal. The CM group, it is reported, nouk was sent to Hanoi to ex- elsewhere. They are all busy elec- continues to be strong in Calcutta explain Peking's mind. The Sino- tioneering. and North Bengal. U.S. communique shows that Peking One thing about the Naxalites has been true to it's word and stuck marks them out from others: they Whatever tIfe differences, the Naxa- to the Vietcong's conditions for peace. never whine about police terror lites are not crying themselves hoarse The Chinese leadership is deeply when their comrades are slain or tor- against repression. They know that involved in the Vietnam war. It has tured. They accept it as inevitable the rulers at bay practise cold.blood- .• found in Hanoi's success a vindica- in what they call a civil war, and call ed repression, that it is part of the MARCH 4, 1972 game. ~epression breeds resisliance the sufferers, on those who have been more intense, in the sprawling coun.• --provided the right politics is in hounded out from their houses and tryside so that the repressive forces command. That in their case savage localities at the point of the 'hooli- are stretched and diSlpersed. • l'epression has not unlocked a mass gan's dagger and the CRP bayonet- All this is easier said than done. movement is an indication that their the bayonet makes all the difference- The leadership after participating in politjcs has not always b~en right. on those who have lost their com. two ministries and fighting to win They have made bloody mistakes and ' rades, that other tactics are called for, another election, may dismiss all this paid a heavy price. that these tacticS' will have to be bas- What about the reaction to the as adventurism when the crunch ed, as the l'epr~on becomes even comes. naked repression now going on againSt the rank and file of the CPM ? Even leaders are not being spared. A rifle was aimed at Mr Prasanta Sur, A Little Minus ex-Mayor, a few days ago in the '1'01. lygunje area. One of his supporters The National COuncil of Applied There is little or no scope for addi_e died. The CPM and some allied Economic Research has just published tional taxation, direct or indirect. parties have been carrying on a pro- its survey of the economy in 1971 and A nine to ten per cent increase in paganda campaign against the vio. its outlook for 1972. It says that the industrial production coupled with a lence of the Congress party and the task of the budget makers for 1972. five per cent rise in agricultural pro- repressive machinery of the Govern- 73 will not be enviable because the duction could yield a seven per cent ment. The tempo of the propaganda net foreign aid next year might be increase in national income. In 1971 has been stepped up-it is a part of nil or even a little minus. From the the growth of national income was the election campaign. But so far it newspaper summary of the report, less than three per cent. has had little effect. The police and ~t appears that the achievement of the higher officials, both in Calcutta the country last year under the Mrs Gandhi has of course, to solve and in New Delhi, are confident that strong and sane leadership of Mrs the stagnation problem, a way out. even if the Left Front is returned to Gandhi, is also a little minus. Let She accepted the principle of lifting power, they do not have to kowtow us quote a few comments from the all constraints on the installed capa. to it; any Left Front Government report. city of indigenous monopoly houses. can be tackled by the Centre-there On the budgetary position, in spite She has extended the liberalisation are thousands of CRP and troops in (ll massive mobilisation of resources to foreign houses too. The legisla- this State. The army moved in in 1971-72, the Centre and the States tive showpiece, the Monopolies Act, strength into West Bengal in January rut together will have an unprece- has been burilCd well and good. 1971 to ensure free and fair elec. dented deficit. f Foreign investors are being assiduos- tions, moved across the border into The economic policy must aim at ly wooed. Fertilisers and petroleum East Bengal to set up democracy ichieving a nine to ten per cent in- have been given over to them and there, and is not moving out of this crease in industnal output. The the Government is now trying to in. State, perhaps because the climate is rate of its growth has been in 1971 fine. duce foreign capitalists to invest in only three per cent or even less, in other lucrative industries. The num- 'It is part of the Congress strategy ~pite of a considerable increase in ber of foreign collaboration schemes to create a situation in which the impqrts. CPM -would be forced to go under_ is mounting: there were 221 schemes 1971 witnessed the strange combi- approved in 1971 against 129 and ground. At the same time, whispers nation of lower production of coal, of going underground are being used ]58 in 1969 and 1970 respectively. a large increase in pit-head stocks But these facts of life have no bear:' by the CPM leadership to keep up and yet sca,rcity of coal in many parts the morale of the rank and file. ' It ing on Mrs Gandhi's rhetoric on self. of the country. reliance. She goes on proclaiming is being rumoured that Mr Hare- In the most important of all indus. that India can do it, on her own reo krishna Konar is not contesting the tries, cotton textiles, which accounts sources. elections because he has other tasks for a fifth of total industrial produc- to attend to. Mr C. Subramaniam, Mrs Gandhi's tion; production during the firS'tnine comrades-in-rhetoric, announced in The CPM has had excellent ex- months of 1971 was seven per cent Durgapur recently that the Govern. perience of inter-party fighting. But less than during the same period of with the police and CRP ranged ment would create in two years 1970. enough jobs to absorb all unemployed against it, it does nOt know what to Sugar industry faced the same cri- do in areas like Tollygunge, Jadav- engineers in the country. By 1973- sis as the cotton textiles industry. 1974 there will be one hundred thou- pur and many other places. The The scope for any substantial 'step. realisation is said to be dawning' on sand unemployed engineers, says the up of Plan investment is not much. AppI'ied Manpower Resources Re- MARCH 4, 1972 mONTIER. search Institute of New Delhi. Let observed that the heartening increase the lowest in the world. . . ).J! hope our foreign investors would in food production was due to fav- In the face of all these stark facts, tueem Mr Subramaniam's pledge. ourable climate and certainly not to if the voters vote for the status quo, Foodgrains production is becom- improved cultivation. The consump- it would be a task for the leftists of ing the rallying cry of the ruling tion of pulses and cereals is lower the country to solve the mystery of Government. But the National than what it was two decades ago. .how subjective rhetoric subdues the Council, let us go back to the study, The calorie content of Indian diet is objective reality.

View from Delhi The Stabilising Game

FROM A POLITICAL CORRESPONDENT

ACK in 1967, at the height of federalism. Except in Kerala where to attempt to split the DMK. New B anti_Congressism in the coun. the Congress is a junior partner in Delhi and Madras are thick with try, the CPI (M) equat:Jedthe minor a CPI-Ied coalition, the Congress is rumours that a split in the DMK, skirmishes between non-Congress determined to impose its rule. But engineered from New Delhi, is im- minent and Mr Karunanidhi would States and the Centre with class then Orissa and Tamil Nadu are not find himself on the defensive. Either struggle. The ministries dominated going to the polls in March because he steps down and lets a colleague of by the CPI (M) in Kerala and West they elected new Assemblies only Bengal feigned confrontations with last year. Mrs Gandhi's liking head the minis- the Centre but gave in tamely. In The Congress operational plan is try (by this time, a good number of DMK MLAs are expected to join the 1968, the Congress thought that non- no longer in doubt. It is bidding Congress) or he seeks dissolution of Congress ministries were interlopers fdr ,coa:»it;ion ministries ~ 'Vest the State Assembly. Mrs Gandhi and declared war on them from the Bengal and Bihar where it wants to hopes to win the Tamil Nadu elec- Fateh Maidan in Hyderabad. It be the dominant partner and the cpr tions hands down against the DMK. went about its toppling operation the junior partner. It hopes to form This is the content of the "stabi- with the zeal of a demolition squad, its own ministries in all the other lity" slog'an which has pushed the sanctified the poIitic~ of defection States (fourteen of them) and the Garibi Hatao slogan to the second and forced mid-term elections to five two Union territc~tjesi' The deal place in the Congress sales ,talk. But State Assemblies. The age of oppor- with the I CPI seems to ~lave been the talk of stability in a State like tunistic non-ideological coalitions, struck. Sharing power with the CP'I, Andhra Pradesh which always had however, did not end. ~hen came one presumes doe~ not undermine Congress milnistties land where nOi the Congress split and the ruling the stability of a Congress ministry party is in a position to oppose the party went about toppling minis- but on the contrary, would streng- Congress in all the seats sounds tries belonging to the rival Congress. then it. absurd. The Congress speeches The only ministries to survive the Once the Congress dominance in draw derisive laugh~er Ifrom the Congress onslaught since 1967 were all but two States (Orissa and Tamil the ones in Orissa and Tamil Nadu. Nadu) is restored, Mrs Gandhi is audiences. Both of them opted for a snap poll expected to get busy with toppling It is significant that the bill to along with the March 1971 Lok operations to complete the process. ban defections by legislators is to be Sabha elections. The Tamil Nadu Biju Patnaik has already agreed to return to the Congress fold after the taken up after the March elections. Ministry, the only one-party non- 'Which means the Congress does not Congress ministry in the country March elections in the country and want the legislation now. It wants after the 1957 CPI Ministry in Orissa will return to stability in to organise all the defections it wants Kerala, emerged stronger for the time. But Tamil Nadu would re- main a problem. The lone Congress before getting the bill through Par· exercise. liament. An ordinance to stop de- The Congress leadership is now member of the State Assembly hap- pens to be a defector from the Con· fections now would make for less engaged in a new drive. It is for unseemly scenes in the States after one-party rule. The call for "stabi- gress (0). The DMK has an abso- lute majority in the legislature the Assembly elections. But defec- lity" can only be interpreted to tion i~ what the Congress wants' in . mean Congress rule at the Centre and the Congress i~ not in a position to organise defections to States where it is not too sure of a and in all the States, which is nega- clear majority for itself and its allies. tion of all the fundamentals of topple it. The only course left is MARCH 4, 1972 (West Bengal and Bihar, for inst- mittedly a regional party. The sta- given on' February 16: ance) . bility of the kind the Congress is pro- Question: How do you view the moting would have no place for reo basic and concrete tasks proposed • Monolith gional parties, if they want to func- the peace plan of the Soviet Gov • The kind of one-party dominance tion through the parliamentary sys- ment and Comrade Leonid Brezhnev? and conformism Mrs Gandhi is seek-. tem, that is. This is the "revolu- Answer: The Government of In- ing would mean the imminent ero- tionary democratic advance" the CPT dia has been consistently in favour of sion of federalism in the name of wants. all initiatives aimed at promoti sljaibility. Stability in the past had peace and security and the reductio been paraphrased to mean a strong Brezhnev Plan of international tensions. The BrezD;i Centre. Now it means a monolith. The Foreign Office is not in a flap nev proposal for collective security in A regional party like the DMK or an over Mr Swaran Singh's interview to Asia enunciated in June 1969 comes unacceptable force like the cpr (M) Tass a few days ago. He gave away in this category ... will not be allowed to run a ministry something: that rndia has heen fa- By implication, the Indo.Soviet in a State because that would impart vourin~ Brezhnev's collective security Treaty of August 1971 ~s part of the in!ltability to the whole system. plan {or Asia. However, since July Brezhnev plan for collective secu- The DMK and the cpr (M) are 1969, the Government has been pre- Tity, though Mr Swaran Singh labour •. campaigning for their own brands of tending in public that it knew noth- ed hard in the course of the inter autonomy for States. Mr Jyoti Basu ing about it. At least there was no view to establish that it was not has told Radio Australia that the pub]ic welcome of the plan. Here aimed agains any third country. Centre has been exploiting West is the vital part of the interview February 27, 1972 Bengal and hinted at a "confronta- tion." What Mr Basu says now was said by his Kerala colleagues long CPM :_Yesterday And Today ago and they now find, after the Trichur by-election, that the Con- HITEN GHOSH gress-CPr combine is growing stron- ger. Whether the cpr (M) wants a THE results of the 1971 mid-term achievement of the CPI (M) and th West Bengal-Centre confrontation polls in West Bengal had a ULF-led by it. The party not only within the framework of the parlia- sigaificance which only political raised its votes to slightly less than mentary sysetm or outside is far from blindness could ignore or underrate. 320/0 but, together with its allies, won clear, but having been faithful allies The two Congress parties taken to- more seats and votes than the two of Mrs Gandhi's party until the gether polled only 33.78% of the Congresses put together. rts tally of other day, they cannot expect their total valid votes against 41.130/0 and 20 seats for Parliament and nearly confrontation talk to be taken 41.32% of the undivided Con~ress 35% of the parliamentary vote waa seriously. in 1967 and 1969 respectively. Even impressive. The upshot of all this will be the if one added the votes for the BangIa What brought the cpr (Mf such end to whatever limited autonomy Congress, the total "Congress" vote rich dividends? Here there was nO the States have because the Congress in West Bengal dropped by more charisma derived from a legendarf - past, no calculated sedes of deft dr Chief Ministers of the post-March era than 2%. This erosion of Con~ress would gladly sign away these rights. support in the State took on added matic moves, no recapitulation of tl\e; The Chief Ministers will not be significance in the parliamentary age-old theme of the little good prin chosen by the MLAs but the Ppime elections in which the two Con- cess held captive by malevolent de- Minister and the lucky winners will gress parties polled between them mons and no benefit of an exc1usi'V find their support automatically. 35.57% of the. total valid votes and, controlled chorus on the ai~. That was how Mr P. C. Sethi was against 39.8% of the undivided Con- The ~uccess was of a party which w imposed on ' Madhya Pradesh gress in 1967. rn terms of seats, too, denounced as the begetter of th through a farcical election made to the Congress (R) returned only 13 politics of violence. . ordeJ;' in New Delhi. ('andidates as against the undivided It was the same violence, which Assuming the cpr (M) is in power Con~ess tally of 14 for 1967. In fact, s'et in motion the formidable engin~ in West Bengal and the DMK conti- so far as West Bengal was concerned of revenge on behalf of the Estab- nues in Tamil Nadu and both of the Congress (R) to~ether with its lishment. Thus, should we not con~ them confront the Centre 'on the covert and overt allies won only 19 elude that the success of the CPI (M) autonomy issue, what would be the seats out of 40 and was therefore in in 1971 was a massive verdict in outcome? One is virtually a regional a minority in Parliament. favour of political violence where party, its stakes limited to two far- The real significance of the poll mass struggles for economic better- removed States and the other is ad- results in West Bengal lay in the ment took militant forms? In was ,r MARCH 4:, 1972 •.. these new forms of struggle in the stresses as under pressure from OUt- lied, . though not to the expected ex- trade unions a·nd among the peasan- side. These strains and stresses tent, to the Congress (R) as the only try that earned the CPlI,(M) its no- within the coalition itself reach- refuge against mass militancy. ' toriety as a party engaged in a relent. ed a high intensity during, the The CPI (M) did release the dor· less pursuit of violence against its unresolved contradiction, by itself, mant sense of power in the masses political enemies. Of course, this was led to a breakdown without any ap- in a restricted field of operation. an exaggeration. As a partner of the parent external compulsion as in the But this may have put the party in a UF Government in West Bengal, the case of the 1967 partnership. The quandary. The dilemma had two CPI (M) was playing the parliamen- split was so complete that the two aspects either of which might unfold tary theme with some occasional groups of erstwhile partners could depending on whether the party 'revolutionary' variations on a minor find no common ground between comes again to power or not. If or key. them. Indeed, the last days of the when the party is returned to power In this context, it is instructive to UF regime showed all the symptoms there is no doubt that the _negative recall the circumstances that led to of a split personality. backlash of mass militancy will be the fall of the two successive United There is no doubt that some of guarded against: the in.fighting will Front governments in West Benga1. the inter-party clashes where the be less frequent and far less intense The first was toppled on the issue of CPI (M) featured prominently were largely owing to the homogeneity of the breakdown of law and order. in the nature of genuine class strug- the composition of the front and a The key word in those days was gle involving violent confrontation greater identity in ends and means of 'gherao', which is a form of collec- between have-nots and haves in the popular struggle. But the real snag tive coercion in a sphere where peace- countryside. There might have been will appear when militant mass ful collective bargaining alone is provocation by interested circles. But movements tend to burst the limits part of the mores. This was a novel it must be admitted that much of of political expediency which they method in trade unionist activities this in-fighting at the level of mu- are intended to subserve. A real within the framework of parliamen- tual liquidation of cadres and sup- challenge to the existing socio-econo. tary politics. During the still more porters was the negative aspect of the mic structure would rise out of these permissive days of the second UF re- politics of violence. Large..scale in- movements. The movements must be gime, struggles for economic relief filtration of the ranks of the militant tuned up higher if the new govern. within the existing class relations parties. by criminals and enemy ment is to avoid a sudden anti.climax. assumed a more militant character. agents made the situation worse, ena· The energy so proudly released can. There was forcible occupation of bling the parties representing vested not be bottled up again. But can vested lands by the land-hungry pea- interests and the revisionist .leader- the leadership of the CPI (M) face sants. True, these struggles were ship of the CPI to w'reck the leftist the music or will it dither? The mostly bloodless and made easier by coalition and openly associate with party seems singttlarly confused as to the refusal of the UF government to rihe K::ongressin the way they did. the conduct of the struggle in its use the police against the people The negative aspects of the militant final stages. If, on the other hand, fighting for their rights. But it should mass struggle were in full focus of the CPI (M) remains out of power, not be forgotten that this refusal to publicity and the failure of the UF will the struggles continue in the employ the repressive organ of the Government was laid at its door. teeth of massive repression which is government to curb ,popular move- The militancy and radicalism that going on? Will the workers, pea· ments and a deliberate desire to by- brought the CP,!,(M) rich dividends sants and middle-class employees con- pass the bureaucratic formalities and among the people involved in strug- tinue to bear it up when the Army legal processes to recover and distri- gle against vested interests, back- and the CRP are let loose upon them bute vested lands and secure various fired among the urban middle class on a more massive scale than witnessed forms of social justice to the have- and people not directly involved. hitherto? Here again on the present lnots, were in themselves a near revo- But while the positive side of the showing, the CPI (M) cannot provide lutionary initiativ'e and a clean break CPI (M) 's militancy increased its any answer that can satisfy its-critics with the norms of parliamentary support among the people as a whole further left. And everybody k!nows politics. It is just because these out- in spite of a serious loss of ground the political consequences of any un- landish forms of struggle, encouraged on account of the backlash, the na- certainty or confusion on this score. particularly by the CPI (M), were a gative manifestations of its manoeu- A disastrous compromise or bloody potent and insidious threat to the vres brought few dividends to the counter-thrust of reaction can quickly infrastructure of exploitative class BangIa Congress or the constituents wipe off the gains achieved through relations that the two successive UF of the ULDF. Their denunciation long years of struggle if the present governments came a cropper. of the politics of violence alienated leadership does not spell out its aims The two successive leftist c:oalitions the leftist vot.es·but failed to enlist in clearer terms and broader perspec- fell apart as much from internal the rightist support. The latter ral- tive.

MARCH 4, 1972 The Indian Bourgeoisie-I

(This paper has been prepared by a the Indian bourgeoisie. Here we the nationalists and the imperial group of students and 'is published will mention some (more or less arbi- reached a climax, the colonial rul for discussion.) trarily) of the key arguments. made several attempts to destroy a About the working of the British hinder the growth of the national- T HE semi-colonial, semi.feudal managing agencies in India one finds bourgeoisie. These included ruinin character of the country is -"The former servants of the East the Indian chemical industries' generally misinterpreted when it is India Company set up their own order to favour the IOI: company; declared that the independence of business as general merchants ..... discriminating against the local pl'(k India is a myth and the bourgeoisie (They) made effective use of their duction of textiles, plywood, tobacCO~ in India is thoroughly compradorial connections with the British and paper, and other products in ordel, in nature. American firms. The shortage of ven. to favour imports;8 importing con One of the main features of impe- ture capital was met by the import of sumler goods lin the name of fig~ rialism is that it accelerates the de- surplus capital from abroad. Within ing inflation in order to deny Indian' velopment of capitalism in the most the country part of the funds re- industry shippi,ng space for . mudt backward countries like the colonies, quired for financing the projects came peeded capital goods ;9 using internal wrote Lenin in "War Programme Of from themselves and their friends and control over Indian transport to hin The Proletarian Revolution". The associates."4 der the distribution of Indian-ma~ possibility of the rise of a nationalist 'While the British managing agen. goods while allowing their impor bourgeoisie i·n colonial India cannot cies were dependent on the export of equivalents to travel freely ;!Oattern be denied; and when a man like British finance capital, the India.n en- ing sabotage of 'Indian paper mi G. D. Birla demands that "all British terprises had little connection with by appointing an adviser for their i investments in India be repatriat- them and received practically no facio provement who, as disclosed later, ed",! one wonders whether or not he lities from them. We may note here a close associate of British monopoly. himself is a representative of the na- how the capital required for starting These are some of the typical case tional bourgeoisie. the Tata Iron and Steel Works at Many others will be found in ot The development of industries in ]amshedpur was raised. documents, e.g., proceedings of lJndia reached a considerable rate "From early morning till late at Federation of Chambers of Comm only in the last part of the last cen. night the Tata offices were besieged and Industries (FICCI) , the o~ tury. The characteristic of the period, by an eager crowd of native investors. nisation of the national bourgeoisie. in the context of tbe Indian eco- Old and young, rich and poor, men On the whole, these show the nomy, was the parallel development and women, they came, offering their tence of sharp contradictions betw of two forces : mites; and at the end of three weeks, lthe 'interests of the «:0.,n6a111rut (a) British finance capital matur. the entire capital required for cons- and the .Ind/ian bourgeoi~e. ed for the export of capital only in truction requirements, £1,630,000 do not justify the totally comprad this period.2 was sec.ured, every penny contributed rial characterisation of the latter. (b) Indian nationalism reached a by some 8,000 native Indians. And Still more interesting evidence period of considerable development when, later, an issue of Debentures be found in the earlier period. which would be evident from the was decided upon to provide the Up 'to World War I, the num petty.bourgeois nationalist upsurges working capital, the entire issue of i,ndustries in India were too. of the period. The rise of the na· £400,000, was subscribed by one 1111-When the war broke out and tional bourgeoisie, as a part of the dian magnate, the Maharaja Scindia supply lines of imports were rising nationalism, was inevitable. of Gwalior."l) down, a large vacuum was created In this article we shall try to estab. This is not an isolated incident. the Indian markets. The govern lish that the growth of the presentS The financial basis of the Indian tal authorities in 'India, faced Indian bourgeoisie occurred more bourgeoisie lay with the Indian fin- crisis, felt badly the need of in through the second force than through anciers; the foreign sources rather re- trialising India. the first. Consequently, they cannot fused to co-operate. Indian business~ be termed totally as compradors from men complained about the inacessi_ Poatwar the beginning; and it will be a dis- bility of foreign banks, the high cost The immediate postwar years tortion of facts to brand the political of 10all1sgiven to Indians, and the a series of interesting develop independence of India a complete privileges granted to foreign bar. Following the recommendations Juyth. rowers. 6 lhe Indian Industrial Commissi Conlfiderabk! .evitklnce exlistts to In the last years of colonial domi- 1916-18, and the Fiscal CommJ • bring out the nationalist character of nation, when the antagonism between 1922, in 1924 the young Tata tr~

MARCH 4, 1972 British imperialism was decaying'!: d Steel industry received a govern- facturing and financial interests were behind the Congress was answered (i) In the forties British invest- nt subsidy at the rate of 33!0/0. In ments abroad ran at about 20/0 of the dition to this, other industries like today at a Press Conference by Mr G. L. Mehta, President of the Indian Gross National Product as against ton, matchboxes, sugar etc. were 80/0 in the earlier periods. iven protection to varying exte~t. Chamber of Commerce and Indus- tries. (ii) British investments abroad cise on Indian textiles was drop. accounted for abaut half of British d, and general import duties were "He said that Indian commercial organizations did not feel apologetic savings in 1914, while merely a tenth ised in 1921, and again in 1925. in the forties. Clearly, the colonial authorities in about the fact that they were an in- tegral part of the national movement (iii) The share of foreign invest- dia, in taking these steps, could not ments in Britain's national income operly understand the contradic- and that they were fully in accord was: Ions between the imperialists and with the essentials of Congress de- mand for freedom and transfer of e Indian bourgeoisie. But very 1903 1914 1940 power." year 1880 lOOn the objections of the British p.c. share 4 7 10 2 .monopolists mounted, and an abrupt Mehta went on to clarify why the bourgeoisie was interested in having a hange cccurred in govepnment (iv) Capital export, as p.c. o.f all pqlicy. Purely Indian industries, nationalist government, and as usual, he portrayed, the interests of the na- new capital issues continued to. be cement and glass, were denied pro. 61 % before World War m~ 300/0 by ection. In 1927, import duties of tional bourgeoisie as the interests of the whole nation. 193'8, and about 200/0 in the late 'ron and steel were lowered and the forties. ubsidy of Tata Steel abolished. o.n It is well.known that a good many nationalist leaders were associated What were the reflections of all the other hand, the foreign-dominat- these in colonial India? ed match industry was given the pro- with the Indian bourgeoisie who managed the nationalist movement The British agency houses had tection it asked for. Other compa- little cause to. look for ather sources ies of imperial interest received the and that there was also. direct parti- dipation of the bourgeoisie, though of finance as long as British capital . ame consideration. limited to some degree, in the move- exparts were available in sufficient Throughout the thirties special quantities. Befare 'World War lone ment. rivileges were granted to British im- would rarely have found Indian rts through such Acts as the Once we agree about the national- ist nature of the present Indian shareholders in British companies. ttawa Agreement, 1932, the Tariff But during the war the supply lines mmendment Act, 1934; the Supple- bourgeoisie under colonial rule, the study of the development of Ibldian were cut off and export of capital mentary Trade Agreement, 1935. The stopped at a time when they were ~eement was met by protests all capitalism will dear :up the confu- sions concerning political indepen- most needed. The British agency over India. G. D. Birla resigned hOllses were left with no other way from the Second Indian Legislative dence. The pre-war period was the peak of survival than to a110wthe entry embly. of British imperialism. During those of Indian capital. From then Indian Further, the Indian Insurance Act, capital started infiltrating the British 9~8, compelled the insurance com- days the growth of the Indian bour- geoisie wa5 limit~d. But by the time agency houses. Although the flow af nies to invest 550/0 of their liabi- export finance resumed after the war 'ties in the fields of imperial in-. of the Second World War the situa- tion changed. There appeared new it was much reduced and the share est and thus restricted the finance of Indian capital continued to.grow.1S pportunities' of the \Jndian bour- imperialist powers challenging the supremacy of British imperialism. The share af fareign banks in all isie, u Internally, because of the long stand- depasits in India stoad as belaw : ing parasitic nature, it became so .nalilt Movement 1947 stagnant that the outbreak of war year 1914 1937 'Quite early, in 1905.8, the move- p.c. share 70 57 17 nt to boycott foreign goods gave saw the decay of British imperialism. impetus to the growth o.f Indian On the other hand, Indian na- tionalism as well as the Indian bour- Between 1936-7 and 1942·3, while pitalism and the bourgeoisie learn· I'lldian campanies increased their what the nationalist movements geoisie was a rising force. Hence the period after World War I became a paid-up capital by 17% the non-In- uld guarantee them. No wonder, dians did by 1%.15 'the nationalist bourgeoisie took an period of intense struggle between British imperialism and Indian capi- Basu and others made a special 'Active interest in the nationalist study of the Calcutta jute mills. They movement. Here is an extract from talism, in which the former lost to. the latter. Thus independence was faund, "In the earliest stages af de- The Statesman of September 17, velapment of the industry scarcely an wan. 1M2 : Indian owned a share in any af the "Mr Churchill's charge that manu- The following data will show haw MARCH 4, 1972 Also Birla in Eastern Economist, April jute mills:.. On the eve of the out- • Lenin in Imperialism, The Highest Stage 1946. break of World War II more than Of Capitalism. • Chettiar, Easlern Economist, March 600/0 of the shares were held by In- • Of course there were Indian business- 1944, pp, 362. dians".16 men who ultimately joined the imperialists, 10 Birla, G. D., Eastern Economist, April Foreign capital, of course, did not e.g. the Sassoons, who ended by establish- 5, 1946, pp. 569. yield easily. The general practise by' ing marital relations with the Rothschilds. 11 Important Correspondence and Docu· the agency houses was to retain as The present-day controvers.ies centre on ments. 194243", FICCI, November 16, 194Z; many shares as needed to ensure con· h0uses like Tata, or Birlas, and by our use trol and sell the rest. But because d, the term 'present' we mean them. pp. 231. ,. All the data have lbeen compiled from of th~ir financial difficulties and the • Basu, The Managing Agency System, original British statistics by Kidron in growing competition from the Indian pp. 2. Foreign 11111estments In India, pp. 30-3~ bourgeoisie the process became more • Speech hy Mr Axel Sahlin, consulting Some of these increased in ab901ut, and more difficult. There was the engineer of the Tatas. Quoted in "Capital, amounts, but their relative importance d•• financial CrISIS of 1931, the crisis Indian Ip,dustries, Trade and Transport creased; during World War Jll, and political Supplement", December, 1933, pp. 46. 13 Guntoo, Indian's Balance Of Payment$~ uncertainties, all of which made the • Indian Industria! Commission, 1916-18, 1920-1960, Chapter 6. continuation of the British agency Report, Chapter XX "Industrial Finance", "Pardi walla, Exchange Bank. In India, houses more and more difficult. The pp. 176-186. Indian Central Banking En- EcoJlomic TVeekly, February 10, 1951, pp. political independence in 1947 gave quiry Committee, 1931, Vol. i, Part II- the final blow. Fear of nation. Minority Report, Chapter XIII, "Foreign, 154. 1L Bose, Indo-British Big Business D~ alization and confiscation led the Banks: Comlll'aints Aglainst Them", pp. foreign capital to withdraw from 193-216. pp. 10. 16 Basu, M anagillg Agency System, Indian markets; and most of them • "The New Octopus", editorial, Eastet~~ sold their shares at the inflationary Ecollomist, April, 7, 1944. 69-70. 11 Kidron, op. cit., pp. 53-54. prices during the inflation of the im- 16 Reserve Bank of India, s.urvey of In· mediate post.independence years. ·Vaidya, Proceedings of the 18th Annual Thus by 1948 most of the controls Meeting of FICCI, 1945, vol. III, pp. 123. rlia's Foreign Liabilities and Assets, 1949. came into Indian hands .. Foreign capital began to leave In. dia after the finanCial crisis of 1931. Some Aspects Of American Capitalism A major part of it-about Rs 1350 croresl2-was repatriated. between R. S. • August, 1942 and July, 1948. The Reserve 'Bank of India estimated the a century Japan has emerged as total foreign capital in India as on HE most important development T colossus. In 1970 Japan practicall 31st December, 1948 at 'Rs 419 in the modern world is the reached the West German level in crares.18 One can claim safely that breakdown of American capitalism. industrial output. There are rival the major part of foreign capital in' 1971 was indeed a crisis year for Am,e. opinions about Japan's position. T India was shipped off following polio rica. Many things happened that '1\Testerneconomists hold that in tical independence and that there- year which showed that the American size of end products she had alread after economic control slipped out system all over the world was sinking advanced to the second position tw to Indian hands to ensure the trans- steadily. In the process it has touch- years ago. The Russian economis fer of political power. British capital ed off a big crisis in the world capi. believe that Japan holds a thi retained control only in some res. talist system. The crisis of Ameri. tricted fields. can capitalism is purely economic. position. They say that the West economists made this computati So, in 1947 flJldia emerged as an But its offshoots are social, political on the basis of current prices an independent bourgeojs State. We and militiary in character. prices in Japa·n had been risin have already discussed how economic The breakdown of American capi- much faster than in West Germany: control was obtained. Political con. talism results from two-fold causes: This has distC1ri!edtheactlUal rela- trol was established by the reorgani- rise of competition within the capi- tion between the end products of the zation of the army and the bureau- talist camp and the inner breakdown cracy. . of American capitalism as a whole. two countries (see New Times, Janu- (To be continued) Let us take the first aspect of the ary 13, 1971). The American eco- problem, namely, competition. To nomist, Paul A. Samuelson, has re- cently assessed the position of Japan. ~ToWards the end of World War n.' start with, America faced competi- thus: "Japan is now No.3 economy Cited in Kidron, Foreign Investments In tion' from two quarters, Japan and of the world. Undoubtedly she will India, pp. 65. Europe. During the last quarter of

1972 in this cen- shape of massive overseas expansion was ·weak. Foreign markets provi- tury. By 2000 her per capita GNP of American firms. Those firms co- ded by underdeveloped countries were may outstrip ours as we outstripped vered mainly the sector of manufac- being captured by American capital. Britain, the 1800 champ" (Newsweek, turing and allied industries. They The developed economies of the We~t November 15, 1971). were the main channels for the bulk could neither expand nor resist the Besides Japa.n, Europe is a chal- of direct American investments thrust of American capital by their lenge. The gap which existed be- abroad. This phenomenon of course own individual effort. Hence arOse tween output per head in the U.S. did not affect Europe alone. Ameri. the concept of common market. The and that in Europe throughout the can capital invaded other advanced composition of the EEC (European sixties has been narrowing very fast. economies where American firms now Economic Community) mill show that Between 1963 and 1968 when the control a significant share of produc- it is a union of advanced economies srowth rate of the American economy tion. Thus in course of seventeen (its members are France, West Ger- was particularly fast, the ratio of years (1950-1967) American manu- many, Italy, Belgium, the Nether- GNP per head in America to GNP facturing and petroleum investments lands, Luxembourg ,and Britain) per head in the EEC fell from 2.21 in Europe increased more than ten- Britain's coming marked the to 2.15. The picture is the same in fold, from $1,358 million to $14,185 culmination of thle move registered the matter of industrial production. million. In Canada over the same during the premiership of Harold Up to the mid-sixties the growth rate period the risc was more than five- Macmillan. It has been regarded as of industrial production in the U.S. fold, from $2,31.1 million to $11,902 being on a par with the signing of was rapid while that of Europe falter- million. By the mid-sixties. more the Magna Carta and the defeat of ed. But by the end of the sixties than 75 per cent of the computers. the Spanish Armada or Waterloo. European growth recovered from this and other electronic goods sold in This is because it contained within early shock. Correspondingly Arne. Europe were produced by American it a promise to change the shape rica·n growth went down. As a re- firms. This fantastic scale of expan- and character of Eorope and Europe's sult, industrial production at the sion of American capital played havoc role in the world. Britain's 'tradi- end of 1969 was 45 per cent higher on non-American capital. The latter tional insular distrust of things con- in the EEC than it had been in 1933 was reduced to a subordinate rolc in tinental' is gone. Thanks to the and 38 per cent higher in the U.S. growth industries. The play of ad- pressure of advanced economies the Again, during the period from 1957 vanced economies came to be res- old outlook of Britain has changed- to 1963 when the growth of the Arne. tricted in !Slow-going Ibackward a fact embodied in the cry that now rican economy was very fast, the sectors. The French journalist and "the end of a great Empire be com- number of continental European politician, Jean-Jaques Servan- pleted in the bastardization of a firms was steadily on the rise. Of Schreiber, articulated this apprehen- great empire-building nation." the top 200 industrial firms in the ~ion in his book The American Chal. world the continentals numbered lcnl{e: "Most striking of all is the The cold fact behind Britain's only 30 in 1957. In 1962 the figure ~trategic character of American in- decision to join Europe is that rose to 41. In the same period the dmtrial penetration. One by one, reali1ties have been driving BTitain umber of American firms fell from U.S. corporations capture those sec- inexorably toward Europe". What 1M to 123 (For a detailed study see tors of the economy most technologi- are these realities? To start with international Big Business 1957-1967: cally advanc.ed. most adaptable to the world has become uncomfortable A study of Comparative growth by change, and with the highest growth for Britain ever since advanced obert Rowthorn & Stephen Hymer). rates" and "starting with a rather countries like France, West Germany, The challenge posed by Europe is matter-of-faCt examination of Ameri- Italy, the Netherlands, Belgium and very much a conscious development. can investment in Europe, we find an Luxembourg signed the Treaty of At one time American capitalism economic system -which is in a state Rome in 1957. For her survival JDMsively spread into Europe and of collapse. 'I>tis our own. We see Britain had to tag either with Ame. look the cpntinent into its grip. The a foreign challenger breaking down rica or with Europe; or she had to time of this expansion of America:n the political and psychological frame- go alone with the Commonwealth. capital corresponded to the fifteen work of our societies. We are wit- Britain's one-time prized relation- years following 1950-a period when nessing the prelude to our our own ship with America has only e:1,{posed a tom Europe was recovering from historical bankruptcy". her to the influence of American the shock of war. This age of Arne. capital. Vis-a-vis the twin £orce~ of rican capitalism was officially usher- Common Market America a.nd a highly industrialized ed in with the promulgation of the The response OIf Europe to the continent, the Commonwealth is too Marshall Plan in 1948. In the fol- penetration of .American capital weak as a trading partner. Over the lowing years American capital flowed ~pri.ngs from this ~hock. With the past decade the GNP of the EEC into Europe unchecked and took the passing away of old empires Europe has increased by 95% and that of

MARCH 4. !972 the U.S. by 61%. Bri tain was trai. goods in European markets. The 1958. Even the U.S. end .•product i ling only with 42% .. Discounting in- British entrepreneurs are exceptio- dicated this process of decline in m flation the real wage' of British wor. nally jubilant over Britain's joining dustry. In 1970 the U.S. end-prodtii kers has gone down. In 1958 it was 'the .EEC. According". to Time was $978 million thousand. But af ~he -highest ,ion Europe. jToday ,~,t} <8.11.7i) a survey of 1,000 firms price adjustments this comes to abo is the lowest on the continent barring found 9,50lc, in favour of jo~ning the 929 thousand million as against 932 in southern Italy. 1£ Britain decided Common Market. EEC has offered 1969. The result of this general to remain outside one trading bloc the possIbility of Europe-wide mar- fall in industrial output means a. or another she would have been keting. Some of the major British sharp cutback in related fields. poorer; because in that case she companies like British Leyland Mo- There were clear indications of thO would have lost her bargaining tors and Imperial Chemical Indus- ci".Isi~·in Ithe American eQonomy power and her stake in spaping the tries Ltd. are doiug exceptionally New Times (ibid) writes: "There economic institutions of the future. well on the continent even without were frequent stock exchange slumplt; tariff advantage. Parti~ularly West How can the Common Market and share price levels now are 30 per Germany and France provide them cent lower than two years ago. The thwart the challenge of American .with a wide market. Given a Epur result has been to bankrupt ev~n bi capital? The British decision to of fresh competition they may do corporations like Penn Central an join the REC has opened the possibi- even better. Ling Temco Vought. In all th lity of the exp~sion of the Common The Common Market is a kind of were 8,940 business bankruptc' Market from the Equator to the economic nationalism for Europe during the year, which is a record North Pole engulfing the former who has her own rules of the game. figure". _ French and British African colonies If its internal solidarity is retained There are two allied problems iU in the south and Norway, Denmark and if its current tendency'to expand which \ the ¢isis :marii£estloo itd. and Ireland in the north. Should gnthers Imomenqum lit may well be These are inRation and unemplO¥ this happen, a new economic super- that a Leviathan will emerge in the ment. Inflation is rampant in A~ power will come into existence. A global market to challenge the new rica. "Creeping" inflation which ten-member Common Market! will imperialism of America. Whether has engulfed almost all the capitaliJ have a population of 258 million America will be able to cope with it economies has 'urned into "gallo~ which is certainly larger than that will depend on whether the Ameri- ing" inflation. During the peri of all major powers except China. can economy retains its dynamism. 1957·67 price levels rose by an av Its combined GNP in 1971 waS'expec- But in thle existing conditions this rage 1.7 per cent a year. In 1968-'1 ted to be about $660 billion as is almost impossible. For the Ame- the rate was 6 per cent. The pro against the estimated $1,058 billion rican capitalist economy 1970 was a spiral has negated the benefits 0 for the U.S. It means that only the bad year in many respects. Its cur. wage 'increases which the work U.S. could exceed it in per capita rent crisis is a hangover from that secured through long struggles an GNP. It would also surpass the U.S. year. In the first place the growth strikie.battles. Inflation enriches Russia, Communist China and Japan rate in America fell off. New financi,d oligarchy. The profi in gold reserves and annual e~ports. Times (No.2,. January 13, 1971) arising out of the difference betw At the moment its position is quite gives the foJ.Ibw'inw.figu·res : the the growing wholesale and ret sound because it has already accoun. American share. .in the ca¢talist prices are appropriated by hi ted for one-third of the world's world output dropped from 43.4 per monopolies. Vis-a-vis this the w trading. cent to 41.3 (one reason for this is ing class faces destitution because How do entrepreneurs react to the the challenge of the EEC and Japan the price rise. They have to go { EEe? The rules of membership of as explai·ned above). The manufac. fresh battles in order to defend t\le~ lhe ERe commit the members to turing industries were operating at social living. Thus inflation sh lowering tariffs. Britain by April the end of 1970 at 76 per cent of pens class contradictions. The fol 1973 will lower her tariff by 20%. their capacity. This is the biggest wing table gives some idea about t By 1977 tariffs will be abolished. It fall in the productivity of these in- pI'ice rise in America. means that major industries of dustries in a decade. The steel out- Europe will have full play on deve. put dropped from 128 million tons Index of Price Increases in loped economies. American capital in 1969 to 120 million in 1970. (196.3-100) will have to operate vis-a-vis this Even a big industry like the auto- 1965 1966 1967 1968 1969 challenge. Thus Italian refrigera- motive showed a fall in output to the Wholesale prices 102 tors and woollens, West German tune"' of 9%. There was a 2% fall 106 108 113 heavy electrical equipment and che- from the position of 1969 in overall Retail prices micals, French tyres and many of the industrial output. This was the "(consumer goods) 103 sort will compete with American first absolUlte aimual '

MARCH 4, 1972 estions of financial viability, need the world. Here emphasis should be land .tax, salt duty, abgaree(cax on 'fur a reputation of good faith etc. on development of those facilities ~the luxury of the very po~r) were rutrained the government from which increased the capacity of pri. all paid by' the poor, that conceding all the demands of mary producing nations to export Indian trading' and capitalist classes the British cotton interest groups. On marketable surpluses to Europe. enjoyed unfair immunity from taxa. the other hand the bureaucratic ma- In this general framework Bhatta- tion. The Indian press made ob. chinery also was an obstacle. Some charyya examines in detail the du- 'jection against "insupportable taxa· interest groups like those of Dundee ferent aspects of the financial machin- tion". The native as well as the or Manchester were more influential try of the British Indian Government, Anglo-Indian newspapers opposed di. than other groups like British grain its personnel, its decentralization, rect taxation in all forms. On the merchants (for reduction of the grain diflerent heads of revenue and their oher hand they recommended addi. importance, different heads of expen. tion to salt duties which affected the duty they had to wait six years) . diture-Home charge, military ex- poorest class; by direct tax the penditure etc. He categorically points middle and high income groups were JiDperial Interesu One possible objection to this em- out that the tariff policy of the Gov- affected. Low income groups wanted phasis on the role of British interest ernment of India. seems to have been progressive taxation. The profes- groups is that the geographical distri- based on the premise of a division of sional and enterepreneurial cla!(swas bution of British overseas investment labour between India and England- happy with the inequity of tax does not indicate that Britain's vital the former supplying raw material which could not differentiate be- economic interests lay in maintaining and the latter specialising in indus- tween the incomes which represented tile Indian empire. So economic in. trial manufacture. He tells simple the fruits of their industry and the in- terests were not vital in the making truths in a simple way, without in. comes of rentiers, landlords etc. of imperial policy. There is some troducing the jargon of modern eco- Sometimes economics and ethics truth in this argument, no doubt- nomics. mixed, for example in the case of the recent researches conclusively prove As a reaction .against the British opium tariff. But the point to be that a very large portion of overseas policy the Indians were also expres- noted is, definite class interest and investment outside the Empire to in- sing their dissenting vie~s in the bias played a large part here and dependent countries. But most of period, but no coherent set of ideas there were clashes of interest not only the authors paid tlueir attention to yet emerged which may be called na- between the British and the IIndians, the period after 1870; the major tionalist. Practically informed pub- but also between Indians and movement of British capital to India lic opinion was in a rudimentary Indians. The Indian press tried to occurred before that period. Bhatta. stage. Yet, the question of taxation make public opinion by stressing charyya rightly points out the data -slogans like "Taxation-with Re- the questions of tax burden, income limitations of studies based on creat- presentation"-was raised. Repeatedly tax and direct taxes, military and (I'dstatistics. It may be the fact that Indian opinion was expressed on tpe Home charges, import of British ca- the Empire became less attractive standard of living, economic condi. pital, tariff policy etc. ana despite the as a field of investment from the clos- don of the masses, fiscal burdens etc. fact that the interests of all the classes jng years of the 19th century, but it The British Government as usual said and strata of the subject race were not is not correct that it was never re- that the country was in the midst of the same, the elements of economic na· garded as such. Moreover, it was not economic development and the State's tionalism were germinating--sec- possible for· either businessmen or share of the national income would tional interests were being transcend. licy-makers to get the exact infor. be automatically growing, but those ed by larger issues like the appoint. tnation and the hindsight of the who got most benefits out of this ment of Indians in the upper latter-day historians. Besides all these, 'development were not bearing their layers of the bureaucracy, the military influence of the British interest share of burden. The English Press, and Home charges etc. Some of the groups (active on· the Indian scene more or less, accepted the official ideas which were expressed during was not exactly correlated to the view that it was necessary to have a this period had strong affinities with ratio of the British interests in In. fiscal system which would "throw the those of the Congress resolutions of dia to total British investments in burden of the State more equally early years, though many radical opi- o~r the whole society". They saw nions of Naoroji and others were not that the tax fell exclusively on accep!ed. But emergence and develop- FRONTIER is available from the workers. Despite gross increase ment of this process is beyond the of wealth, all classes were not bene- scope of Sabyasachi Bhatllacha:ryya's CENTRAL NEWS AGENCY fited-rise in the price of agri. study: the very limited time-span of ,-;, .• cultural products benefited only The Financial Foundations of the Bri- t 25/90 Connaugh Place .J... 1 the landowners. The condition of li~h Raj is really a weakness of the Ntw Delhi-} the landless became more miserable otherwise brilliant research. .-i-.r-: Insipid Rendering Separatelly and together, we have in- Soviet policies had imposed on her sisted that a guerrilla movement during the last two decades. More. launched from external sanctuaries, over, ~ndia in Tibet province and By A FILM CRITIC with borrowed guns and on foreign the Soviet Union in Sinkiang pro- " advice, would surely turn Bangladesh vince have aided and sustained sepa- A RT director Sudhen~u Roy's de- . into a plaything of the Indian rul- ratist movements within the Chinese but as film-maker In Uphaar ing class and an agricultural back- territories. The American sponsor- hardly adds a new name to reckon yard of the West Bengali capitalists. ship of the "Nationalist" faction in with as! a director of consequence. Further, a sovereign Bangladesh that Taiwan province is, of course, well- The story based on Samapti by Tagore comes into being as a result of the known. On the other hand, Pakis- which Satyajit Ray made into such exercise ·of India's military might Lan has been instrumental in help- a sensitive piece is stretched beyond would become a rather slavish mem- ing- China break out of this isolation legitimate limits and the padding reo her of the Soviet-sponsored anti- during the latter '60s. The Chinese sorted to take away the compressed Chinese alliance in Asia. are grateful to Pakistan for provid.J lyrical beauty of the original. H is The Soviet Union has been trying ing the air and other tangible links 110t clear what the director intends to extend her influence all along the with countries of Africa and the to do because the period and locale rims of Asia. She has improved her Middle East, both areas where the are not properly delineated leaving- relations with Turkey and Iran so as U.S. and the Soviet Union have tried a gap in the audience's understand- to expand her naval thrust in the their utmost to subvert China's role. ing of the milieu. Even the pictures- region. She has gained servicing Now, with only slightly improved que palm-fringed backwaters of facilities at the island of Socotra and relations with the U.S., with the Kerala photographed in luS'h colour is negotiating for similar fa~ilities at direct military threat from the So- do not lend authenticity to the Ceylon, Singapore, Mauritius and ~he viet Union still portentious, with the theme. Maldives. She is nomalising rei a- Soviet influence on the increase The overblown story has Jaya tions with the Philippines, has offer- throughout Asia, China faces the pos- Bhaduri as its overgrown adolesc.ent ed military supplies to Burma, and sible dissolution of Pakistan, the pos- heroine whose ICoy antics however is now giving economic aid to Suhar- sible loss of direct links with Africa hardly pasS!for innocence the village to's regime in Indonesia. Reports and the Middle East, and the crea. belle is supposed to embody. Some ~;uggest that. she has made some con. tion of a new state, only sixty or so scenes involving the vapid hero tend cHiatory advandestoward the "Na- miles away from her south-eastern to be mawkishly reminiscent of Ray'!; tionalists" of Taiwan as well. After borders, which is from the start a po- patch('s too long. The film leans the massive military aid which made tential stagjng (area for Indo-Sovied on inessential visual pomposity and India's invasion of East Bengal pos- acts hostile to herself. 90mewhat shO'rt on the exploration sible, it .is only reasonable to expect NevertheleS'S, in stressing the prin- of the transformation that takes place that the Soviet Union shall now get ciple of non-interference in the in- in the bride which awakens her to naval facilities in India. The possi- ternal affairs of another statef which womanhood. bility that the Soviets, may instal is .cardinal among the (Five Princi. SAM bases in West Bengal-purport_ pIes of Co-existence, China was cons Clippings edly for the defence of Bangladesh, cious of more than her own interests in fact to tighten the circle aroun.d as a leading socialist country in the Pakistan And The Big China-cannot be ruled out. world. She was also keeping in For some years now, Secretary view the fact that the stru~gle had Powers General Brezhnev has been proposing to be waged by the Bengali people AIJAZ AHMAD an Asian Security Pact with the in- themselVies and that i!oreign inter- tent of isolating China and making vention would be necessarily a reac- Since March, 1971, each of the the Soviet power in As{a quite un- tionary one, with the direct purpose present editors of ·Pakistan Forum mistakable. The Indo-Soviet pact of of arresting and annihilating the radi.; has affirmed repeatedly the Bengalis' August last marked the first major cal forces in Bangladesh. In other right of seli-dete'rmination, and we breakthrough for this policy. The in- words, the Chinese leadership antici- have done so in the pages of this vasion of East Bengal is the second, pated the Soviet-backed Indian ag- journal as well as through a variety more blatant and cold-blooded step gression and formulated their policy of other means. Each of us has in the same direction. Naturally, the on the basis of this anticipation. nonetheless warned also that the class People's Republic of China has been It should be instructive to compare origins of the Awami League leader- quick to grasp and denounce the this foresight on the part of the ship are- likely t\) make the govern- whole move. Chinese g-overnment with the oppor- ment of that party a blatant ally of China has suffered a great deal tunism displayed by the government the worldwide counter-revolution. from the isolation the American and of the U.S, MARCH 4, 1972 FRONTIER .~ The widely accepted myth that the tiollship owing Ito membership in In West Pakistan, she has a ready. U.S. supported Pakistan during the both CENTO and SEATO. The \ made clientele. The formal gestures war has little basis in fact. Here, treaty obligation for the U.S. was l of the U.S. gc,vernment were design. the Anderson papers are quite reveal- clear enough; to do for Pakistan at; ed not in support of Pakistan-whose ing, and what they reveal 'is actually least as much as the Soviet Union t dismemberment Kissinger had clearly sharply different from what Ander. was doing for India-militarily. The' conceded-·but in recognition of the son quoted as saying on December U.S. did nothing of the sort. clientele in West Pakistan. The do- son himself ~'aysthey reveal. Kissin- Parenthetically, we should empha- mestic economic situation is now ger is quoted as saying on December size that we are not arguing in favour grave enough, and Bhutto is pliant 5th that the tota~ military aid to of a U.S. intervention. We are mere· enough, so that the U.S. need not Pakistan in 1971 amounted to about ly pointing out that the myth of now 'worry in this area. 5 million dollars-equivalent to Nixon's support for Pakistan is false. In Bangladesh, Mujib now controls perhaps a couple of aircraft. In view. Why should the U.S. have cared the apparatus. His unconditional reo particularly of the massive Russian to make the few empty, formal ges- lease was surely not unconnec.ted aid to India, these miniscule delive- tures she did make? Well, for seve- with some quiet but forceful Ameri. _ ries to Pakistan had no practical value ral reasons. First, the U.S. is con- can diplomacy. He has already reo whatever. Then, as early as Decem- cerned about the continuing expan- pudiated Abdus Samad's earlier belli. ber 6th, Kissinger is quoted as saying sian of the Soviet Navy. Now that gJeren't statement: 'thait the U.S. aid that the outcome of the war is of India has drawn closer to the Soviet would be "tainted" and therefore not course prectictable in the sense that Union and an independent Bangla- acceptable to Bangladesh. Ilnstead, the fall of East Bengal was a fore- desh may well become a key factor Mujib wants aid from "everywhere". gone conclusion; all he wishes Bush in the Soviet geopolitics of the In- 1n Washington plans are under way to do at the U.N. is simply state a dian Ocean region, the U.S. is get- for massive financial backing for the position for the record. On the ques- ting tough. But it is posturing, for regime--initially in the form of tion of third-party transfers, particu- most part. :For example, it is "humanitarian aid" for the refug-ees. larly from Jordan, his instructions incorrect to say that the econo- Meanwhile, a U.S. consulate continuo are clearly to wait and see. Even the mic aid to India haSi been cut; ed to function in Dacca although, much.talked-about Enterprise did not only a fraction of it has been according to the State Department, begin to move toward the Indian suspended. Similarly, it is wrong the question of recognition for Ban. Ocean till after the fall of Dacca was to assume that Bangladesh has gladesh "is not under consideration alreadv imminent. come into being against the wishes of at this time'.' (Emphasis added) None 'Is this support? Before the fall of the U.S. government. The severe of it is very surprising. In fact, the a single major city in East Bengal, posture of the U.S. officials means character of the new Bangladesh gov- ten days be[ore the surrender in a simply that aid to and recognition of ernment is so patently bourgeois two-week war, the highest official of Bangladesh shall now be conditional that even the Soviet correspondents the U.S. foreign policy establishment upon a much reduced Soviet role in are beginning' to joke about Mujib's had already decided to let the war the region. Otherwise, there is no- "socialism". reach the end that the Soviet Union thing inimical to the U.S. interests A recent issue of Observer reports and the Indian government wished. In in the present leadership structure of Mujih as saying that "the British the U.N. ( the only guarantees Bush Bangladesh or in the Indian inter- system is the best for the Bengali asked ,for were about West Pakistan; vention as such. people" and describing himself as a none about East Bengal) . India's right It would be foolish to think that friend of Harold Wilson and Roy to dictate a military solution was tacit- the U.S. is so tied to her relation. Jenkins. This again is typical, rather ly conceded. ship with the West Pakistan rulers reminiscent of Zulfikar Ali Bhutto 'We have to be quite clear on this that she would sacrifice the larg;er who once described Wilson and Willy issue. China has amicable relations clientele in India. Nevertheless, Brandt as his molels of socialist lead. !Withthe government of Pakistan on West Pakistan does play a consider· ership. All in all, the civilian leaders. the basi~ of reciprocity and mutual able role in the U.S. military control of East and West Pakistan are not respect for each other's sovereignty; over the Mediterranean and Indian very dissimilar. The Awami Lea~ue nothing in this relationship requires Ocean regions. The chain of inter. and the People's Party are cut from China to intervene militarily on behalf lock\ing military jl}1staHationswhich the same cloth. And, Mujib and of Pakistan. Contrary to the impres. bellin with Spain and Portugal, and Bhutto are different only in the sion Yahya and others tried to create which runs all the way through brand of nationalism to which each dome~tically, China has never given Greece, Jordan, Israel and Iran, finds subscribes. Otherwise, both are vic. any guarantee. W'ith the U.S., on Pakistan at the other end of it. To tims of a !.-elf·centredsuperfluity of a the other hand, Pakistan has a bilate- protect the chain, the U.S. gives a very dangerous kind. (From Pakistan ' ral Defence Pact and a special rela. modicum of support to each regime. Forum) Canada) . '"' Government in the "defensiveH war the mutual contradiction in the form against French aggression and says of war. "W(e can cite any number of such Mr Basavpunniah discovered two- In The Mirror Of Bangladesh examples". But that the case does tier reasons behind New Delhi's sup- }lot fit in, is evident enough from his port to Bangladesh: the democratic The CPI (M) leaders have been own honest admission that the Ger- parties, people and forces inside the pointing out that the Congress is dig- man working class was "opposed to country and their pressure; and se- ging the grave of democracy in India. the crossing of the frontiers and cond, the heavy burden of ten mil- But while doing so, they in the same entering into France". What about lion refugees and the concomitant breath appreciated the Government's the CPI (M) ? Did they support a law and order problem. That's all. actions over Bangladesh. According 'defensive' war? Don't you expect to hear something to their analysis, the Government of In reply to another qulestion Mr more than this from a Marxist who India has been simultaneously a des- Basavpunniah says "Nobody believes can at least imagine what vested in- troyer of democracy at home, and the bourgeois-landlord Government terests are eyeing Bangladesh? You founder of the same abroad; nation- of India plays the role of a libera- may wonder-but really there is nOt ally they are 'semi-fascist' and inter. tor". After a while he speaks in third! Is it not hard to believe nationally anti-fascist-cum-anti-impe-- another voice-"it is the bourgeois- that a Government, which in clear rialist. A rare example of 'unity of landlord Government supporting the defiance of the spirit of democracy opposites' indeed. issues of democracy and national and pr~ssure of democratic forces, has Here is PeoPles Democracy, the liberation in this particular case". If made a record of toppling down so organ of the CPM, dated December this is not a self-contradict'Ory state- many non-Congress ministries by 26, 1971 in front of me. It carries ment what else is? hook or by crook, has killed so many a nearly two-page story of police-Con- Mr Basavpunniah unmaSKShis and people on mere suspicion, and has gress-goonda attacks on CPI (M) his party's face when he expresses his set up a sordid tradition of jail.kill. cadres at the very moment when readiness to welcome support, irres- ing, will support a cause because of "Congress rulers talked of unity as pective of the reasons and motives the internal pressure of democratic the need of the hour" along with a behind it. He finds noth~ng to object forces? Did not democratic forces in lisu of CPI (M) martyr(~, totalling even if the support is "in its own in_ this country try to exert similar pres- 132. Furthermore, in modest wordSl terest and of stability and peace in sure in the past over other burning and meek tone there is a call to the the subcontinent as well as in the, international issues and didn't the Government urging it to "ensure de- COli ntry". 'Stability', 'Peace' etc. here Government keep mum? mocracy at home" accompanied by an mean the same thing to a Marxist Mr Basavpunniah's second reason article under the caption "Some and an anti-Marxist, leading ,to a is equally untenable. Because it vo- questions on Bangladesh" by Mr strange coincidence, an unholy mer- luntarily allowed the refugees to pour Basavpunniah, the topmost theoreti- ger of ideas of the two professedly into India in their thousands, the cian of the party. opposite camps. The CPI (M) lead- Government cannot claim the right The leader defends his party's ers should know that they can guaran- to unleash war on a neighbour. Mr supporting a 'bourgeois-landlord' Gov- tee and safeguard 'peace', 'stability' Basavpunniah's attempt to rationalise ernment against another when the of Mrs Gandhi's variety only by every action of the Indian Govern- former has a war "precipitated" on abandoning the path of class s~ruggle. ment is unashamed. it by the latter. Who precipitated Replying to another questio~ . the war upon whom yet remains to be Mr Basavpunniah rules out the cunningly admits that some forces In decided, bu t Mr Basavpunniah avoids possibility of turning: the Indo-Pak India might have had a 'covetous this controversy and accepts unques. war into a civil war. Iill his view, eye' on Bangladesh to utilise it as a tioningly the version propagated by "to think that the present war is a market and if possible to exploit it. the Indian Government. The man. war between two imperialist powers His admission is in such a cryptic ner in which the Government of llll- for redivision of territories or con- fashion as to screen the collusion be- dia handled the contradiction (of quest of markets would be grievous- tween the Govemment of India and courS'C assuming its right to do so) ly wrong" and no analogy of impe- these forces. between the two wings of Pakistan rialism should be brought in. True, . is in clear violation of the norms of India and Pakistan being two under- ~tate·to-State iTelationship. It was developed countries are not impe- an interfernece in the internal affairs rialist powers. But both being semi- fl'or FRONTIER contact of another country. 1\11' Rasavpunniah feudal and semi-colonial in charac- does not raise this point even once. ter can be set against one another bv SANYAL BROS. He cites the case of the German work- their imperialist bosses in their own ing class supporting the German interest, leading to the exploitation of 26, Main Road. ]amshedpur-l,

1\fARCH 4, 1972 F~~~~~~~~~~~~~~~l~'~~~~~~~·'·

FRON,TIER \I :--i Statement required undel the Registration of Ntjwspapers

(Central Rules) 1956.

FORM IV

(See Rule 8)

I. Place of Publication Calcutta

2. Periodicity of its publication . \Veekly 3. Printer's name 4. Publisher's " ~ Samar Sen 5. Editor's "

Nationality Indian

Address 15C, Swinhoe Street, Calcutta.19

6. Names and addresses of individuals who own the newspaper and part. Germinal Publications (Pt.) Ltd., ners or shareholders holding more 6], Matt Lane, Calcutta.13 than one per cent of the total capi~al A. Sen, 36/1, Old Ballygunje 2nd Lane, Calcutta-19; P. Tagore, 18, BaVygunge Place, Calcutta-19; K. C. Das, 4, Tilak Road, Ca1cutta-29; A. Sen, 25, Broad Street, Calcutta- 19; J. N. Majumdar, 852 Block 'P', New Alipore, Calcutta.33; Dipti Guha Thakurta, 161B, R. B. Ave. nue, Calcutta.19 ; S. Sen, 15.C, Swin. hoe Street, Calcutta-19; Gouri Mitra, 699F, Block 'P', New Ali- pore, Calcutta-33; Chitra Chakra. varty, P-16, Old Ballygunje Road, Calcutta-19; J. P. Sen, 188/1, R. B. Avenue, Calcutta.29; P. C. Dutta, Dankuni, Hooghly, West Bengal; Sreelata Ghosh, 699F, Block 'P', New Alipore, CaLcutl'a.33; 'S. K!. Bhattacharya, P-18, Sarsuna Main Road, Calcutta.61.

1, SAMARSEN, hereby declare that the particulars given above are true to the best of my knowledge and belief.

Dated March 4, 1972 Signature of Publisher SAMARSEN t (

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~ There is a shortage of 82 million ho~ses in India • 'LIe is building ho~es- doing what is most needed today

A growing population, a growing policy-holders an opportunity gap in housing. LIC has already to build their own homes. invested over Rs. 300 crores in A new venture by LIC is the housing loans. Township started at Borivli, Loans to State Governments Bombay, which will provide have financed housing schemes for 4,000 flats. This is the first of all over the country, in cities, the model townships that L1C towns, industrial townships. plans to build and would be Total loans granted to Housing followed up at Bangalore, •• Boards and Housing Lucknow, Hyderabad, Calcutta Co-operatives amount to and other places soon. Rs. 87.22 crores during LIe believes' in providing recent years. The 'Own essentials. And a decent home is Your Home' Scheme gives among the most vital.

~ LIe-privileged to be a People's Trust .