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11/5/1961 - Malayan “Pearl Harbor”: Reactions to U.S. Surplus Disposal by Gayl D. Ness

INSTITUTE OF CURRENT WORLD AFFAIRS GDN Lorog Malayan Pearl Harbor Reactions Petalig Jaya Selangor U S Surplus Disposal Malaya November Mr Richard H Nolte Institute Current World Affairs Madison Avenue New York New York Dear Mr Nolte Twice recent months United States goveroment deliv heavy economic blows Federation Malaya Slightly month General Services Administration keeper America stockpiles anouoced would Coogress permissio dispose about Just G S A followiog British Board Trade anounced would dispose stockpiled rubber If price above pound limit would placed sales If price falls below about sales limited month The British limit their sales month The first caused share market conslderably commodity market remained rather stable Only investors speculators really widely circulated newspapers Malaya dealt aserious economic United States The second serious resulted almost violent outburst iodignation against U S This called American brand Pearl Harbor We accused attacking Malaya dropping megaton friends Shutheast Asia This reaction totally without reason Together rubber ti_account about Malaya exports about Gross National Product about government revenues Every rubber price means MS 20000 US Federation revenues In economically active populatio egaged rubber idustries These direct measures importance which iCreased greatly multiplier effect If income force falls slightly keepers kinds ducers pinch acutely And course government speding development projects curtailed Malaya reactions uderstadable light requests U S government The Malayans accepted unrestricted sales prices academic question anyway accepted restriction morth prices between They asked prices below G S A restrict sales month These restriction Malayans would cover amounts internatlon market could absorb without becoming unduly depressed The G S A could accept validity Malaya claims The state departmeat argues sales beeficlal aggregate iterests produciog purchasing coutrles One proportion group assigned aggregate interests The difference between selling month amounts about US price This figure represents U S Gross National Product represents I Malaya Gross National Product Federation eenues The chairman Singapore Chamber Commerce Rubber Association called G S A decision worst blunders U S Southeast Asia He argued economic injury Malaya would proportion benefits gained U S The figures appear unreasonable The U S undoubtedly important qualification In handed Malayan govern U S would continue exercise circumspection salesf rubber Further after 15000 below U S would initiative consult producing countries would serious consider ation their views Whatever means qualificatioa considered empty because injury damage would already Some damage already announcement alone caused prices The G S A undoubtedly housekeeping problems including fierce pressures economize It economizing measures adversely affect underdeveloped developing country The Malayans forgiven placing value their economic development above economy G S A The Malayans argue their economic development valuable U S short economies G S A effect Freshly emerging years Communists terrorists government economic development remaining permanently Communists subversion I important Communism economic polltical totalitarlan Malaya could argue Philippines countries Southeast Asia successfully attempting attai political economic maturity parliamentary democratic framework market structure If G S A ahead plans Malayan economy certainly adversely affected It probable serious proportions One always wonders these possibilities fully considered Washington Sincerely yours Gay D Ness Received New York November