1990 The University of North Carolina Press
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Library of Congress Cataloging-in-Publication Data
Merrill, Dennis.
Bread and the ballot : the United States and India's economic development, 1947-1963 / by Dennis Merrill.
p. cm.
Includes bibliographical references (p.
ISBN 0-8078-5744-0(alk. paper)
1. Economic assistance, AmericanIndia. 2. United States
Foreign economic relationsIndia. 3. IndiaForeign economic
relationsUnited States. I. Title.
HC435.2.M47 1990
338.9173054dc20 90-50012
CIP
appeared previously, in somewhat different form, as Indo-American Relations, 1947-50: A Missed Opportunity in Asia, Diplomatic History 11 (Summer 1987): 203-26, and is reproduced here by permission of Scholarly Resources.
The table in is taken from Robert C. Johansen, The National Interest and the Human Interest (Princeton, N.J., 1980), pp. 128-29, and is reproduced by permission of Princeton University Press.
Illustrations
President Truman signs the Emergency Indian Wheat Bill, 15 June 1951
Shirt-sleeves diplomacy
President Eisenhower receives Secretary of State Dulles, Indian diplomat Krishna Menon, and Indian ambassador Mehta at the White House, 14 June 1955
President and Mrs. Eisenhower welcome Prime Minister Nehru and daughter Indira Gandhi to the White House, 16 December 1956
A somber welcoming ceremony is held for Prime Minister Nehru at Andrews Air Force Base, 6 November 1961
Preface
During the early 1970s, as the Vietnam War wound down and I enrolled in college, it became common in academic and political circles to speak of development as one of the key issues in North-South relations. The developing nations of the south, as they were referred to at the time, pressed the wealthy nations of the north to offer foreign assistance and loans at low rates, reduce tariff barriers, pay more for imported raw materials through commodity price agreements, and compromise with needy nations that nationalized certain foreign-owned industries. In the United Nations the group of seventy-sevena coalition of developing nations numbering more than one hundredarticulated Third World discontent in their call for the establishment of a New International Economic Order. Inspired by the call to international justice, moved by the urgency of the problem, and sensitive to the growing interdependence of nations, I became interested in development. That interest and concern eventually led me to write this book.
Development can be studied from a vast array of perspectives. Since the end of World War II the term has been bantered about by social scientists, philosophers, political leaders, and bureaucrats. This book explores the many meanings of the word, but focuses upon the development process within the context of United States diplomatic history. It traces the evolution of United States economic aid to India during the darkest days of the Cold War when development for American policymakers became synonymous with the foreign policy of containment. India ranked as one of the largest and most populous of the emerging nations and had declared its intention to remain neutral in the great power rivalry. It ultimately became a major prize in the Soviet-American competition and a recipient of large amounts of aid from both sides.
The book derives its title in part from the fact that India has, for the past forty years, maintained the world's largest democracy. Although the phrase is misleading and not to be interpreted literally, India has struggled over the years to achieve development through democratic meansan uncommon experience in the non-Western world. The title is also drawn from a speech delivered by President Dwight D. Eisenhower in early 1959, at a time when development diplomacy was coming into its own. Speaking out in favor of an enlarged foreign aid budget, the president declared that it was the policy of the United States to convince a billion people in the less developed areas that there is a way of life by which they can have bread and the ballot, a better livelihood and the right to choose the means of their livelihood, social change and social justicein short progress and liberty Bread and the ballot was more than just a catchy phrase. The words embodied the very finest American principles and traditions. Assisting India in its plans for democratic, economic development offered American leaders a major opportunity to act upon their stated ideals. The study of United States economic aid to India during the early postwar era offers the historian a special opportunity to measure the degree to which America kept its promise to a significant portion of the world's poor.
This study is the first historical analysis of Indo-American relations based largely on recently declassified, United States government documents. I made extensive use of State Department records for the years 1947 through 1957, housed in the National Archives in Washington, D.C. A great deal of the documentation was drawn from the inner records of the Truman and Eisenhower administrations, available at the Harry S. Truman and Dwight D. Eisenhower presidential libraries. Many recordssuch as the President's Secretary's File, the White House Central File, minutes of National Security Council Meetings, and National Security Policy Papersbecame available only in the late 1970s and 1980s. By using mandatory review procedures, I was able to gain access to hundreds of documents that had previously been closed to researchers. In addition to these sources, the invaluable papers of former Ambassador Chester Bowles at Yale University, and several other private manuscript collections, provided a wealth of information. Research at the British Public Record Office in Kew Gardens, England brought to light the perspectives and insights of that former colonial power on a number of key issues in Indo-American relations.
Although the available historical record is rich, historians of the recent past do face some serious limitations. At this time, State Department records for the period after 1957 remain closed to researchers. Consequently, of this work, which cover the post-1957 period, unfortunately cannot provide a day-to-day account of policy making. Through enterprising research in presidential and private manuscript collections, I have pieced together an informative story that I think nonetheless sheds considerable light on Indo-American relations during the Eisenhower and Kennedy years. In the course of my adventures with the mandatory review processwhereby documents that are twenty years of age or older are reviewed for declassificationI was grateful to learn that government agencies were more likely to release documents that related to economic rather than political affairs. This was most fortunate in the case of Indo-American relations, in which many of the most interesting issues revolved around the matter of economic development.
Although the focus for this study is on United States policy, I have tried to add depth and clarity to the narrative by paying close attention to the Indian context and presenting Indian views on relevant economic and political issues. In this regard, I was most fortunate to spend the academic year 1983-84 in India as a research scholar under the Fulbright Program for Graduate Study Abroad. Indian government restrictions limited access to official files and manuscript collections for the years after 1946, but published government reports were made readily available. I also used English-language newspapers and periodicals, and interviewed a number of former officials. Most important, I had an opportunity to exchange ideas with Indian scholars, journalists, and government personnel. Living in India acquainted me with that nation's rich cultural traditions, its diverse social landscape, and the intricacies of Indian politics. I observed, firsthand, the heart-wrenching reality of Indian povertyand the hope of a nation for a better tomorrow.