FOURTEENTH YEAH OF PUBLICATION December 15, 1962 Volume XIV No 50 Price 50 Naye Paise

EDITORIALS Non-aligned Move 1897 Non-aligned Move More on Agricultural Refinance 1898 THE objective of the Colombo conference of the six non-aligned Afro- Selling Indian Bonds Abroad 1899 Asian national was neither that of airing lofty sentiments about peace and friendship nor that of passing judgment on the rights and wrongs in the WEEKLY NOTES Sino-Indian conflict; it was to create conditions in which it would become Textile Stocks—Drug Prices—Coal possible for India and China to start negotiations for settling the border Transport — Nyerere Returns — Research for Peace 1900 question. The decision not to publicise the proposals agreed to at the conference is proof of the earnestness with which this objective is being OUR DELHI LETTER pursued by the six. A premature disclosure of the proposals may well Oil and Emergency 1903 have prejudiced their chances of acceptance by India and China. Instead, it has been wisely decided to convey the proposals confidentially to the IN AND AROUND LOK SABHA two Governments. And after the two Governments have had the chance to The Parting of Ways 1901 study the proposals in detail, the Ceylonese Prime Minister is to visit New CAPITAL VIEW Delhi and Peking to ascertain the response to the proposals and to decide Getting Earnest the future course of action of the neutral countries. The communique — Romesh Thapar 1905 issued by the Colombo meeting makes it clear that the Afro-Asian coun- tries do not consider their efforts ended with this meeting but that they FROM THE LONDON END will continue "until a final settlement of this problem can be negotiated Growth of Industrial Concentration 1907 directly between the Governments of India and People's Republic of China". OFFICIAL PAPER Protecting the Consumer The exchange of communications between India and China, never very — Sreelekha Basu 1909 illuminating, has at least brought this out that the principal differences SPECIAL ARTICLES between the Indian proposals for starting negotiations and the Chinese Towards a Theory of Indian Politics proposals of November 21 are in relation to Ladakh. India has been — Wayne A Wilcox 1911 insisting that the military positions as they existed prior to Sepember 8, 1962 should be re-established while the Chinese proposals are that Indian Britain's Rising Unemployment (From Our London Correspondent) 1913 troops should withdraw 20 kilometres from their present positions. The latter involves two things. First, India must not re-establish the 40-odd Marginal Productivity of Labour in check-posts in the Chip Chap and Galwan river valleys, the Pangong lake Manufacturing — V V Bhanoji Rao 1915 area and the Demchok area which were overrun by the Chinese after October 20. These posts were behind the Chinese claim line. Second, Trend of Mineral Exports, 1951-61 India would have to abandon vital positions like Chushul, etc which are — S Narayanaswamy 1921 to the south of the Chinese claim line and are now held by Indian troops. AROUND BOMBAY MARKETS Tn his communications to the Chinese Prime Minister and in his speeches Concern over Cotton Prices Un­ in Parliament, Pandit Nehru has made it clear that there can be no warranted 1923 question of Indian troops withdrawing from their present positions in what Is recognised even by the Chinese to be Indian territory. On this COMPANY NOTES question there can be no compromise. As for the Indian demand that Scindia Steam — Standard Batteriew — Structural Engineering ---- the Chinese must withdraw to the positions held by them on September FACT— New US Loans 1925 8, 1962, China, should not find this unacceptable since the Chinese Prime Minister has himself pointed out that when the Chinese troops withdraw CURRENT STATISTICS 1927 to their positions of November 9, 1959, they would also be behind their positions as on September 8, 1962. THE ECONOMIC WEEKLY 65, Apollo Street, Fort, Should the Chinese Government forgo its demand that Indian troops Bombay. withdraw from their present positions, as does not appear unlikely at the moment of waiting the difference between the Indian and Chinese Telephone : 253406 proposals would boil down mainly to whether Indian troops are to go Annual Subscription : Rs 24 forward and occupy the area Inst since October 20. The Prime Minister Foreign 40 s or $ 6 has told Parliament that in NEFA it is not proposed at present to send