ROSTOW BIDS U.S. TAKE '55 LOOK AT FORMOSA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01416R000100050037-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 9, 2016
• Document Release Date: January 25, 1999
• Sequence Number: 37
• Publication Date: June 13, 1955
• Content Type: NSPR

Apprqyf Fft9l~ f 1999/09107-.--CIk
Rostow Bids U. S. Take
'55 Look at Formosa
The United States
CPYRGHT
tellectuals" are "presently
see the Formoso political situ-
ation in the 1955 perspective."
This is the "first requirement
of any constructive American
approach" to the Formosa prob-
lem according to W. W. Ros-
tow's, "An American Policy in
Asia," published today.
The 60 - page provocative
book is published by the Mas-
sachusetts Institute of Tech-
nology's press and John Wiley
& Sons in a $1 paper-back edi-
tion. Rostow, with whom Rich-
ard W. Hatch has collaborated,
is a leading American expert
on the Communist world. He is
associated with MIT's Center
or International Studies.
The Rostow proposals for
American policy toward For-
mosa, in particular, and China,
in general, include:
? American policy should be
to help develop "an increasing-
ly strong and independent
Asian society" on the island
through a political as well as
military partnership.
? Formosa should be made
more of a "symbol of Free
China" for the overseas Chi-
nese through educational op-
portunities in competition with
those offered by Red China.
Most important are some 10,000
Chinese intellectuals, "2000 of
them with degrees from Amer-
ican colleges who have fled
from Communist China to
Hongkong." Not one of these
was able to enter the United
States in the first year of the
Refugee Relief Act. Also,
"over 5000 trained Chinese in-
should 1 perhaps an extra $2 billion al
? Admission of Red China
world." It also "would have
a disastrous effect on Formo-
j san morale." Hence, the Pei-
1ping government should not
be admitted until the military
situation has been stabilized
should be transferred to India
as the leading "independent
Asian state" with the two Chi-
nas having Assembly seats
only.
Much of "An American Pol-
icy in Asia" is devoted to what
Rostow feels is the need for a
"vigorous" American economic
policy. He suggests a "sus-
tained" and "regional" plan of
China's Security Council sea HE WASHINGTON POST and T IMES H E R A L
LLL - L" QLLLL a LLLZIJvl jJU LLLVC
American policy has beep
launched. Then Nationalis
year for five years with tie.
U n i t e d States contribute g
about two-thirds and the r st
coming mainly from Weste n.
Europe. Rostow says t is,
should be "primarily an inve t
ment program" with "no e.
between economic and in i-.
tary pacts."
The reasoning behind t is
economic proposal is that Co 1-
munist China "can force
in-
vestment at the cost of lo
ered standards of living." T is.
advantage must be met by loa s'
and grants "on a scale suf i-?
cient to permit Free Asia ;o,
surpass Peking's (Peiping s)
economic performance; a d
this broad effort at Free Asi n
growth must be woven into a
says, is the "ingrained attitu
of the peasant" who resi is
Communist collectivization it
who responds to the Fr
World's "method of consent" is
indicated by India's village e-
velopment program.
Rostow argues that "it in t-
ters greatly to us" that the n-:
than domestic developm t
plans succeed. A "heighten d!
Indian effort in industry p-
pears required to meet fu y
the Chinese Communist ch 1-
lenge," he writes. But if tie
democratic Indian methods of
development fail, Rostow says,
"India and Asia could be w )n
to communism without a C i-
nese soldier crossing Chin e
borders."
Rostow feels that "the re a-
tive performance of India and'
China in their first five-year
plans "may very well deter-
mine the outcome of the id o-
logical struggle for Asia." e
argues that China is meeti g
its domestic problems in t e
wrong way by forcing end s-
trialization first and that t e
alliance with Russia is t e f
"wrong way" for Peiping o:
win "independence" on t le
00050037-8
Monda , June 13, 1955