DINNER WITH PRESIDENT OF TIME, INC.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M00165A002400120008-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 15, 2016
• Document Release Date: March 9, 2004
• Sequence Number: 8
• Publication Date: May 10, 1977
• Content Type: MF

Approved For Rose 2004/03/23 : CIA-RDP80M00165A.4001200088
.9 May 1977
MEMORANDUM FOR: Director of Central Intellig
FROM
SUBJECT
? ? Herbert E. Hetu
Assistant to the Director (Public Affairs)
L'Igistry
: Dinner with President of Time, Inc.
1. You and Mrs. Turner will dine with Mr. and Mrs. James R.
Shepley at 7:30 p.m., Monday, 9 May in Suite 416 of the Watergate
Hotel. Others in attendance will be Mr. and Mrs. Barry Zorthian
and Mr. and Mrs. H. E. Hetu (Peggy and I).
2. Attached is some miscellaneous biographical information on
Shepley and background on Time, Inc.
3. Other information:
a. Shepley: He has a long interest in the military and
intelligence. Had his beginnings as a UPI correspondent in Pennsylvania.
Worked his way up the Time, Inc. chain through Life, Fortune and Time
magazines. Took a leave of absence to work on Nixon's campaign in 1960.
He wrote the article in Life magazine which established the term
BRINKSMANSHIP. He has been the publisher of both Fortune and Time.
Has held present position since 1969. He and his wife (his second --
but has been married to her for some 20 years) love Washington and
spend a great deal of time here. He wants very much to become involved
in some way in the activity here in Washington -- particularly something
having to do with the military or intelligence. I'm sure he would have
wanted to be a member of the PFIAB. He would be a prime candidate for
some advisory role -- perhaps he's the one who should put something
together to look into the matter of the "Media and Classified Information --
Individual Responsibility or Criminal Penalties".
b. Zorthian: A long-time government public affairs person. Well
liked and highly respected. Was the Minister-Counselor of Information at
the U.S. Mission in Saigon from February 1964 to July 1967. Hosted the
daily "Five O'Clock Follies" (daily press brief in Saigon) with skill and
good humor. Has been Vice President/ s of Time, Inc.
since 1969.
Enc.
Herbert E. Hetu
Approved For ReIese2004/03L 'IARDP80
25X1 Approved For Release 2004/03/23 : CIA-RDP80M00165A002400120008-8
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Approved
For
ase 2064/03/23 : CIA-RDP80M0016
1969
Time Inc. Reorganizes
Alredy Choinman,
roNod aid Ex:cativo?
?tiara Mips a Prt,
Its HENRY RAMONT
Andrew Hoiskell sins named!
executive officer of lime
yesterday in a macr
irristrattve reorganizadon that,
'lowed the resignatiora,--'03;
. es It- Linen as the corn-i,
s president.
... ..Tvetg/xitilled t
axt fan spring.
to :dieted of his iitj
es because of his r
is-' -Lev
1%7
2400120008-8
N? 234-69_12
anagemen
Traclizinati-Comistate
great to see Oa Luce, Y
*cireierl ta rats fizgchip.t. :
i'l senior effiror 41' Time
zine said Tester. day.""Tkere4ie ce.
-as always thee one fdo Istins.-.1are a.
?
_diesel./ Wer
iw t:Med vte=wa zz
.t:, _.:11,
?his trodiaknt.' -A.
? t 4
1M'ar linl
s itl; .4.iestr:ttir'
of varks? ni eivinkoha of
ei " had canna, ration that t' ''',-,,- ':' SnYzk
-,
...n a tishetr Life. Sports =too ,.?-: 71,..0. h,
,t zsd ada' wide range ofHst.". wstly.
..3 anti . sells zrem'Ost,-ertscr.,,,,,. -opt.wes.a. a
vssices. etforazi,ortaa. . matelfan: _.,..ci a km, of
railer 3114 ?4;111 rnClaM" (M. "OiaC t C
17-m new esecinive vice mai." !remit St/wk.
etits zre Bern-fard M.
:,orrnerlysenior vice ;vete. ,,stere.y. cl,?4?,,,,:jart,,
who wit he Mt. Site tefey
? 'S deputy ,_ mar, . - ? T.,
wfor. erixaairk.l.rost=e;Mirmiro....., Art Loir, T-4 k-4
pplw,.-icirc. who will Cnniez taro- :_rvir,prifia, Bum
daction and. ektrtlidtkis nocene. Leip.,,,?,,Iseek Life
'tag -al Inaichena -tion..1 of aii numb:bin M'xidtels.s. "wirror
the-Time Si Life- lind..Ving. arid Rift. ,-,t .Ainvied, vixe- xest.-
p
-;.tbe, board of directors also elect
nt and foroierfy ublic h er fif
d rarres Sh Nfileer 7i.r.i-z-Life socks. who wa be ;media,
i - maeurne..ra- succeed! re:cocas:1>hr rm.- book. record and - ..
f. -6.. ceated tbree new ex- _ Cre24`4' aparriAtmenrs risted'in....1'7--GML21'77. 'emit
r. I-act. an Aetion, One Tft os
film aritiction?
.1-lye vice pretridend'es and 1.1 numn-r.--andurn weret :: ;4117-2 ,
niSne, sewn other high corpo- itPutraty Wente fl-etd. tram as--- V.--1. 3'..iriT, perand,
'robe appointments. ,L -sistant pubfisher of' Ede. bee te=t-d..io.ei. ha.
deiskell. vita at L-- ,c-rs, -,i-e
comes. pooficieft- a Fir?-.taie. '7":"",..`,...."?: for
,nsirm.so ofi
has haea part oil Arthur W. Keyktir. iternitesii. ..r , ?act tea ? if:Weilfet- fietrer.' asmciate $,'--7the sar-.?._,- .,...
publisber of Trme-Lffe ficolts. ', "ii",. Los`
,mairt publishing corporation. our; -lead of 7)?? and corici'rministar; . . .. ,.. ., _ ?,-- :=ed......__itab.-__
=emirate that ruied the ?
res r rqd 3 d-ep ap-- succeeds Mr_ Ai--stell as 1.......- .- - -
1
tI
the death of its iotc.re,..t.?1 plc:Ay. it requiTeS talc kin.a, predation for the Joh he has ,r, at that divicattrop, ivut-1,2ew nave
gaerary,R.? /pee. in )warchs, 1967?i,of Change iZI structure. It wit done as president since lgSfi."1 - ellArcennoPaficar.aztO toesi...' -1=114",,,,,..-'
The ?the. rnernb,s. were mr.i;give us a better opportvaity. Mr. Linen. who is 57, wit "deiit, win heitiase assistaaa to: ;,ilLra '"74,...&'
Linen and Heineyfionovan.whalicen?,,, arM and Manage ner ?Petserve as chairman ?I tl'e fr`111`I'Mr. Heiskell. :
remains as editor in chief cifil,?12-" ',____________ -" panY's executive osimoittee.i ,,,....:: _--....,,---?r :,.., ? The Genera/
all Mane inc. publications. ,- -"-i? t 'flangy.'s come al a thine, 'rhe committee is respon.Whie,__??"'"Y -'.1'.11.91t.. ''..?Egairittve.' f tiordiart.. a
__ , _ ywheu the $550-mil I ion- a-y ear! f or approving all . maior cos- _.'aall-e. P.s.ecia121;- ?a -- sTataa'Vte. i 11,..!teGennTalitpu -
. ,
. . ,. publishing -company is strug-iporate dcisiuns, such as accui...,survoefoust,
la SC
; His -new title of chef execa--,,gling to overcome die financialsition of new properties or ex-- of that' ' It; : and
tive officer?bestowed for the of the magazine in-:pension of prewnt ones, lie re-
!first time since hir.Luce's deathP.duAry and other adverse, eco-? ones Roy E, Larw.ii, who - ,-ts r!----7-7-4?,??.?-e- ."....
.--..suggersted
that Mr. Heiteli inomic factors that have sharply ;elected -Ace chairman of thet,,?:3'ItIPa* niat ridves ripl-to tbe food
rtsuidd howl fie company's man-ildepressed its stock.board of directors. - Vilma assistant inzhh. ef' to as,,,i to nirtae P r
)agenseirt math while Mr- 1)0"i Announced in Manure:Want , i Hemy Luce 3c1,. a son of the'i5ncinte, ___Pnblisher IA Thma- ., 4 rr_.* .r1.?1efric-k,
site:4 for_ editorial operations.ii The adnanistrative overhaudePsrPnratinn:s kiunder and rin-41-.--r ii '44 rg the "nrIOnnninal in--MS.?KO -
van would retain full respove.
.:A ,?,.,,_ biggest at nme we. since;i; her of fortune since Aprd.,.tital. rateroai Y. rune rac. ex-t 1
Go.dwym-Ma
' *71 -suppose you Might sav 1,--s3. _
a,,-? ate now a , dauravirato,4:1!he sweeping personnel shifts.' .:?1?19:38,shwas. Itan-'ed m s acceed !.eanthies- ? sought. to &Vet any ; was Cltirltar:
. itwezen said in
at inter.ifin 1960 that alow,4 yomivr......... epley. a.s publisher of illiOpmmion that tile
w.. 'Medley acd I conninueimen inin' high gets*: soring
a,dri.anistrative at I STIP! Magazine. ?The appoint-roirt. have
Pr=P;ted bY-1. .? Profits
restored the tucel:,7 . ;,-,?,, tin
t,y intro tall i'l mnaenmte thtousthe direction of the;ii-ir- a7 calased-:anytmg!V prnflts' zt-'; '
Pattnmvemthree, andeaSaaimmiSvehetceyeimemaraPasts ?adivaa.as1 annsignoadunced_
ierits reporting to :him:Mr...I-16.0ER and Mr. Donoxan.jivieeklY that h" bt'en the Wr'",'11b124ny.,disdeoriusettI vrart its;.;Inal...Pritssisli-_,,,g-e-s.
g a new level, Of snan-1 The memorandum said the:nerrtlre of the Publishing etn-,,'
etbs-:/ast And) trat-:".41tedi,ic,"-:azUsr- Tir
board had accepted Mr. Lirten'sPire S'nce 1926' ''
s ,caramation reachesq resignation "with regret- for the ia..-Pat,-.4-atntkt /ass au- ? 'nwnt-41s-? ?-t.
.......... . - 4.W, ......? I ?N'L.rF ,
Baisketi JtesA. Un hit
PP
4.:;?v : )keL?-"'''
? 2614 MOODY'S INDUSTRIAL MANUAL
il)rfAu-nsTaiesptyzed For Fillasp 2070A31.WPPAIN) TOW144.2400120008-8
Call
Price
[n100
Call
Price
LONG TERM DEBT
Issue
1. 73e% notes, due 1988
2. Term loans, 73e%. due 1977-80
3. Notes. & mortgages notes, 1976-98
DAmount Charges Earned Interest
Rating Outstanding 1975 1974 Dates
{J&J15
---- 67,976.000J36,000,400 ' 8.37 9.33
As D$50,000,000
CAPITAL STOCK Par Amount DEarned per Sh. Divs. per Sh.
Issue Value Outstanding 1975 1974 1975 1974
1. Common $1. n79,975,000 she. $4.52 $5.01 $2.00 $2.00
WBased on avg abs., as reported by Co. DIssued in Jan. 1
HISTORY f
Incorporated in New York Nov. 28, 1922.
Time, Inc. formerly controlled Time-Fortune
Corp., Rogers and Manson Corp.. March of
Time, Inc., and March of Time Distributors
Corp.* Leese subsidiaries have been dissolved
and their operations taken over by the parent
company. Acquired the Literary Digest mag-
azine in May, 1938, and merged it with "Time."
In 1945 acquired Bryant Paper Co., Maine
Seaboard Paper Co., Bucksport Water and
Hennepin Paper Co. (companies sold to St.
Regis Paper Co. in Nov. 1946). In Dec. 1945
acquired 2639 Corp., sold to Webb & Knapp
in July 1950. In Feb. 1945 acquired Michigan
Square Building Corp., dissolved in Dec. 1953
and operations taken over by parent com-
pany.
In June 1952 acquired entire stock of Albu-
querque Broadcasting Co., 'licensee of radio
station NOB and television station NOB-TV;
subsequently sold one-half interest to Wayne
Coy; in May 1957 Time Inc. and Coy sold all
interests for $1,500,000 cash to ICS'TP, Ince
Minneapolis-St. Paul.
In June, 1953, company acquired 80% Of
common stock of Laterrnountain Broadcasting
& Television Corp. of Salt Lake City licensee
of stations leDYL, KDY.L-FM and KTVT. Sold
Dec. 195e for $Z,100,000 and net quick assets
to Columbia Pictures Corp.
In jinn. 1954, company acquired entire out-
standing stock of Aladdin Radio & Television,
Inc., licensee of radio stations KUL and KLZ-
FM and television station leLZ-TV in Denver.
In 1956. company liquidated investment In
Houston Oil Co. of Texas. As part of plan of
liquidation, company acquired Houston 011's
investment in affiliate East Texas Pulp &
Paper Co. (50% common stock?Company' now
owns 100%?and $3,311,300 of subordinated
notes) and caused East Texas Pulp Be Paper
Co. to acquire 100% of stock of Southwestern
Settlement & Development Corp., which
owned 660,000 acres of timberland (exclusive
of mineral rights) in southeast Texas and
which had been a principal supplier of pulp-
wood to East Texas. Aggregate purchase price
of approximately e35,000,000 was financed by
$18,61a,000 net proceeds (after taxes) from
liquidation of Houston Oil investment, $15,-
750,000 of additional bank borrowing by East
Texas and approximately 5635,000 from the
funds of East Texas. After purchases were
completed on June 6, 1956, Southwestern was
liquidated into East Texas and is operated
as a division of East Texas. Liquidation of
investment in Houston Oil Co. resulted in
capital gain of $15,113,700 after taxes. In 1965,
the name of the subsidiary was changed to
Eastex Incorporated.
On May 22, 1957, company acquired for $15,-
955,000 radio and television properties of
Consolidated Television & Radio Broadcast-
ern Inc., which operated WFBM and WF33M-
TV, Indianapolis, WTCN and WTCN-TV. Min-
neapolis, and WOOD and WOOD-TV, Grand
Rapids.
In Mar., 1962 company acquired KOGO
Broadcasting Corp., San Diego for $6,125,000
and on Apr. 30, 1962 Silver Burdett Co. for
45.000 shares.
In 1964, acquired IMRO-TV for $1,665,000, an
ultra high frequency station in Bakersfield,
Calif.
In Oct. 1964, sold WTCN and WTCN-TV,
Minneapolis, for $4,400,000.
In Jan. 1966 Co. formed General Learning
Corp. a joint venture' with General Electric
Co. to create and market educational ma-
terials systems and services. Co. contributed
Silver Burdett Co. (acq. in 1962) and General
Electric Co. contributed $18,750,000 in cash.
. In Nov., 1966 acquired New York Graphic
Society, Inc. for 45,009 common shares.
Also in 1966 acquired minority interests
In Editions Robert Laffont, a French book
-publisher and -Organizacion. Editorial No-
varo, Mexico.
In- Jan. 1968 acquired Little, Drown &
book publishers, for 170,000 common shares.
In Man 1969, acquired Pioneer Publishing
Co. and in Sept., Lloyd Hollister, Inc., pub-
lishers of 26 weekly and semiweekly news-
papers with combined circulation of 180,000
subscribers in Chicago suburbs.
In 1969, also acquired Peter M. Robeck &
Co. Distributor oftelevision..and pelnpeeional
films for 13,501telnlerrentenheenen ne?nl.Ses
Society dissolved' in 1975 and The Book Find
Club dissolved in 1975 were acquired for
cash, and a subsidiary, New York Graphic
er.-1.4-7 'Ltd acouired Alva Museum Repli-
PriceRange _
1975 1974
(11
Price Range
1975 1974
63 - eine 41ne 24
976. OBegineing Jan. 15, 1983. DExcluding current portion.
In Oct. 1971, acquired Haverhill's, Inc., San
Francisco, and two affiliated cos. in ex-
change for 17,988 corn. stn. (dissolved in 1975).
On June 1, 1972 sold television stations
KLZ, Denver; KOGO, San Diego; KERO, Bak-
ersfield, Cal. and WFBM, Indianapolis to
McGraw-Hill Inc. for $57,200,000 cash and
notes.
In 1971 sold AM radio broadcasting property
in San Diego and in 1e72, sold radio properties
in Denver, Grand Rapids and Indianapolis.
In Dec. 1972, Co. suspended publication of
Life Magazine.
In Jan. 1973, combined Time-Life Films.
Time-Life Video and Time-Life Education to
form subsidiary, Time-Life Films, Inc.
On Aug. 16, 1973 acquired Temple Indus-
tries, Inc. for 3,082,000 common shares, now
operated as Temple-Eastex Inc.
In Feb. 1973 Co. and Sterling Communica-
tions Inc. (50.8% owned by Co.) (see Moody's
OTC Industrial Manual) formed Home Box
Office, Inc. to provide live sports events and
feature movies to cable TV subscribers.
In Sept. 1973 Co. in a transaction that
was essentially an acquisition of minority
interests, acquired Sterling Communications
Inc. which it now operates as Manhattan
Cable Television Inc. and Home Box Office
Inc.
In Sept. 1974 sold its 50% interest in Gen-
eral Learning Corp. to Scott, Foresman & Co.
for cash and notes.
In 1975 sold 60% of its investment in Metro-
Goldwyn Mayer Inc.
In Jan. 1976 sold the business and assets of
Printing Developments, Inc., except for the
color scanning services, for cash and secur-
ities.
In Jan. 1978, also sold Time Tele-Marketing.
Inc. for cash and notes.
Subsidiaries
Time Canada Ltd.
Time-Life International (Nederland) D.V.
Time-Life International (Australia) Pty. Ltd.
Time-Life International de Mexico, S.A.
Time-Life Educational Systems Co. Ltd. -
Time-Life Tosho Hambai Kabushiki Kaisha
Time-Life International (New Zealand) Ltd.
Time-Life Films, Inc.
Time-Life Libraries, Inc.
Fourth Berry Street Corp.
Little, Brown and Co. (Inc.)
New York Graphic Society Ltd.
Pioneer Press Inc.
Temple-Eastex Inc. ?
Printing Developments, Inc. ,
Rayco Realty Co.
Sering Areas-Marketing, Inc.
541 Fairbanks Corn.
Manhattan Cable Television, Inc.
Home Box Office, Inc.
HBO Studio Productions, Inc.
Time Distribution Services, Inc.
BUSINESS & PRODUCTS .."
Little, Brown & Co. publishes trade boo'
Legal and medical books and college tax
books.
New York Graphic Society Ltd. publish
Line art reproductions..
Forest Products
Paper and Paperboard: Company produc
coated and uncoated paper and paperboar
bleached linerboard and market pulp us
for folding cartons, bakery board, bleach
bags, paper plates, disposable cups and oth
packaging products; and through its su
sidiaries. also makes, a limited amount
packaging products.
Building Miamian: Company manulactur
building materials, including pine lumb
fiberboard, parecieboard, plywood, gypsu
wallboard and decorative wall paneling.
Other Operations IS
Company provides products and services
the graphic arts industry; markets inform
tion relating to the movement of groce
products; publishes weekly newspape
owns an NBC-TV affiliate (V7OTV?. Gra:
Rapids, Michigan); engages in corrirnerci
and industrial contracting; manufactur
furniture, furniture parte and wooden her
age cases; and engages in mortgage ban
land development, the operatian and ren
of real property and certain related ins
ance activities thru Lurnbermans' Investm
Corp., an unconsolidated subsidiary. -
Developmental Act7vities
Company operates a cable TV system
New York City and owns Home Box Off
(IMO), a pay TV network, which provi
programming to cable television syste
nation-wide.
Revenues by Line of Business, years end
Dec. 31 (in millions of dollars):
1
47
24
The Company's principal lines of business
are: publishing magazines, books, recordings
anti related products ("Publishing"); produc-
tion of pulp and paperboard and building
materials ("Forest Products"); sale of prod-
ucts and services to the graphic arts in-
dustry, marketing of information relating to
the movement of grocery products, news-
paper publishing. TV broadcasting, film pro-
duction and distribution, manufacturing
furniture and beverage cases and commercial
and industrial contracting ("Other Oper-
ations"); and operations of urban cable TV
and pay TV ("Developmental Activities").
Publishing
Magaxine: Publishes TIME, a weekly news
magazine; SPORTS ILLUSTRATED, a weekly
sports magazine; FORTUNE, a monthly mag-
azine on economic and business develop-
ments; MONEY, a monthly magazine on
personal and family financial management;
and PEOPLE, which begun publishing in
Mar. 1974, a national weekly that focuses on
individual personalities.
There are five weekly international edi-
tions of TIT.M. which are printed and dis-
tributed overseas, in Canada, Latin America,
Europe, Asia, and the South Pacific (Aus-
tralia and Neve Zealand).
Book Publishing: Publishes TI=-LIFE
ich ex:Ups a series of vol-
40E1
interest an appeal, are pittiVIPri gigs
and 26 foreign languages and are sold largely
through direct mail solicitation.
Time-Life Records produces and distributes
Publishing
Forest products Other operations -
Devel.
activities
1975
531.0
257.6
105.9
162
Total _______ 910.7
PROPERTIES
Principal manufacturing facilities and
flees of Company are located as follows:
New York Michigan
Texas (3) Louisiana
Illinois California
Georgia France
Arkansas Netherlands
Tennessee (3) England
Mississippi Japan
MANAGEMENT
? Officers
Andrew Heiskell. Chairrrsan & Chief
Officer
R. E. Larsen, Vice-Chairman - ei
I. R. Shepley, President & Chief Oper. Off.
C. B. Bear, Group Vice-Pres. & Sec. -
A. W. Keylor, Group Vice-President
Arthur Temple, Group Vice-Pres.
Joan D. Manley, Group Vice-Pres.
3. R. Munro. Group Vice-Pres.
R. B. Incleeough, Vice-Presidenie Fin_
Vice-'2'reeldents
D. M. Wilson F. Hammack
P.. P. Davidson B. L. Paisner
R. P. Fis er
C. L. Gleason, jr.
C. J. Grum
S. Denman, Jr.
P. S. Hopkins
G. M. Levin
Henry Luce, TEE
3. A. Meyers
E. G. Perle
H. D. Schutz
I. R. SLagter
R. M. Steed
K. F. Sutton
A. H. Thornhill, Sr
Garry Valk
3. A. Watters
N. J. Nicholas Barry Zorthean
W. E. Bishop, Comptroller & Asst. Sec.
E. P. Lenahan, Treas.
J. W. Fowlkes, Asst. Treasurer
Olga Curcio, Asst. Treas.
K. L. Dolan, Asst. Comptroller
P. P. Sheppe, Asst, Secretary
E. F. Ferro, Asst. Comptroller
Directors
Andrew Heiskell A. W. leeylor
Roy E. Larsen J. A. Linen
Medley Donovan S. M. Linowitz
IIIHenryn1 c3?'auccee.,
Matins Homer elavdeigheVarner.
J. R. Shepley . Arthur Temple
It. B. lelc.inecrugh -r:-Robert Keeler
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16 March 1977
MEMORANDUM FOR: Director of Central Intelligence
?
FROM ?Andrew T. Falkiewicz
Assistant to the Director
SUBJECT Your Dinner Meeting with Time Magazine
Please note that the Time lunch has now become the Time
dinner.
Place: Washington bureau of Time, third floor,
888 16th St, (just north ofLafayette Park)
Date and Time: Thursday, 17 March at 7:30 p.m.
We will provide the guest list as ?soon as we receive it
from Time Inc. The senior Time representative will be
Editor-in-Chief, Hedley Donovan. Unfortunately, Hugh Sidey,
the Washington bureau chief, will be out of town and unable to
attend. Others will be drawn from both New York and Washington
offices.
Ground Rules: This will be strictly a background session,
an opportunity to get acquainted, to discuss some topics perhaps
in depth without the inhibitions of an on-the-record interview.
There will be no recording and, I am told, not even notes will
be taken. Donovan and his colleagues will undoubtedly get
some ideas for the kind of stories they might want to develop
in the future.
The session should be lively and brief. I am sure you can
plan on being out by 9:30 p.m. Since you are scheduled for a
Congressional visit at the end of the day, I will plan to make
my way to 888 16th St. independently and be there when you arrive.
Andrew T. Falkiewicz
AA_
I
ST
Approved For lose 2004/03/2
Central Intelligence Agen
Washington, D.C. 20505
[phone] ."
Herbert E. Hetu
Assistant for Public Affairs
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ON PAGE e?
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?
THE WASHINGTON pouitighim
By Frances Moore Lappe and Joseph Collins
EARNING often begins with unlearning. Several
JL years' research on world food problems has helped .
us see through four pervasive myths that keep most
Americans paralyzed by guilt and fear. These myths
prevented us from grasping how hunger is' generated
and that basic food self-reliance is possible for every
country in. the world.
MYTH ONE: People are hungry because of scarcity..
? both of food and of agricultural resources. They are
hungry because populations exceed the limited amount
of food-producing resouri?es.
AN SCARCITY seriously be considered the cause of
hunger when even in the "fOod crisis" of the early
1970s there was plenty to go around --:.enough in grains
-alone to provide everyone with 3,060 calories a day and.
ample protein? _ -
? Such global estimates mean little, we are told; what
matters is the food available for each person in the
"hungry countries." We found, however, that in count
tries accounting for 86 per cent of the total population of
the underdeveloped world, food production has kept
pace with and often exceeded the growth in population
during the last 20 years.
The writers are co-directors of the Institute forFood.
and Development Policy in San Francisco and co-
authors of "Food First," to be published next month by:
Houghton Mifflin. -
. .... ?
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?
,
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The very countries that most of us t - of as food-de-
ficient and import-dependeneare themselves major agri-
cultural exporters. Forty per cent of all agricultural im-
) ports into the United States, itself one of the world's top
three agricultural importers, come from countries of
supposed scarcity. In 1973,36 Of the 40 nations classified s
:by. the United Nations as being most seriously affected
:by enflated world food prices actually exported agricul-
;tural goods to the United States. ?
Agricultural exports from the Sahelian countries dra-
matically increased during the early 1970s, in the face of
'drought and widespread hunger. Still, a U.N. Food and
.Agriculture Organization survey, squelched by dis.
'pleased aid-seeking governments, documented that
'every Sahelian country, with the possible exception of
enineral-rich Mauritania; actually produced enough
grain to feed its total population, even during the worst
drought year. So, while many went hungry, it was not
because of scarcity of agricultural production or even of
food. _
,And what of land scarcity? Several authoritative stud.
_ie,s agree that only 44 per cent of the world's cultivable .
lend is actually being cropped: Many landowners who -
hold land as an investment, not as a source of their food,
leave vast amounts implanted. In Colombia the largest
landholders, in control of 70 per cent of the Agricultural
land, planted only 6 per cent in 1960. But it was in assess- _ ?
hag what is grown that we came to understand the true
magnitude of the waste of land needed by hungry
,.people. In Central American and Caribbean countries,
eihere as many as 70 per cent of the children are under-
nourished, at least half of the agricultural land, often
the best land, is made to produce crops for export, not
food for the local people.
. If "too many people" were the cause of hunger, we
should expect to fikd more hungry people in countries
with greater density of people per agricultural acre. We
can find no such correlation: In China, for example, 80
. per cent more people live from each cultivated acre
than in India. Yet today, in what was once called the
"land of famine," no one starves. Country-by-country in-
vestigations, even of the so-called basket easel like
Bangladesh, led us to believe that in fact there may well
be no country without adequate agricultural resources
to feed its population.
Neither the size of today's population nor population
growth is now the cause of hunger. But it is self-evident
that continuing to grow at current pies would seriously.
, undercut the future well-being of all of us. This self-evi-
dent truth should add even greater urgency to the
search for the real causes of rapid population growth.
And these causes ? the insecurity and poverty of the
? majority caused by the monopolization of food resources
by the few ? are the same as the real causes of hunger.
MYTH TWO: The solution to the hunger problem is to
produce more food. .
IAGNOSING the cause of hunger as scarcity in-
evitably leads to thinking that greater production
?
itself will solve the problem. Thus, for at least 30 years,
governments, international agencies and multinational
corporations have promoted greater production through
-"modernization" --1147proubdifrigroRelletised2004/03/23,
lizers, pesticides, machinery and the seeds that give -
higher yields if they receive such inputs. ?
But when a new agricultural technology enters a sys-
tem shot through with inequalities, it'profits only those
who already have some combination of. land, money,
credit "worthiness" and political influence. This fact
alone has excluded most rural people and all the world's -
hungry.
Once agriculture becomes a speculativeinvestrnent in
- which sheer control of the basic inputs ensures financial
success, a catastrophic chain of events is set into motion.
Competition for land_ sends land values soaring. Higher
rents drive tenants and sharecroppers into the ranks of -
' ? the landless who now make up the majority in many
countries. With their increased profits, the powerful
buy out small farmers. Large commercial operators, tak-
ing advantage of government credits and subsidies,
mecheniee to avoid labor "management problems.'
Many made landless by the production fccus, finding
ever fewer agricultural jobs, join the hopeless search for
work in urban areas. .
To be cut Out of production is to be cut out of con-
sumption. The observation of a 36-cent-a-day agricul-
tural laborer in Bihar, India, confirms this truth: "If you .
don't own any land, you never get enough to eat, even if
the land is producing well."
Indeed, in many countries more food per-person is
being produced, yet many are more hungry. This is not a
theoretical point. Study after study around the world
documents a consistent pattern: the retrogression of
much of the rural population even as production ad- -
vances. One extensive, just completed study of seven
Asian countries containing 70 per cent of the rural popit
lation of the non-socialist underdeveloped world conclu-
des that -the increase in poverty [of 20 to 80 per cent of
the rural population] has been associated not with a fall
. but with a rise in cereal production per head."
Ignoring the social roots of hunger and focusing in-
stead- on production increases has taken us backward, -
not forward. The real obstacle to people feeding them- -
selves is that they do not have control over productive
resources. People who know they control their resour-
ces will, through their ingenuity and labor, make them
ever more productive. The Chinese experience shows?
that people are a country's most underutilized resource.
Human energy, properly Motivated and organized, has
transformed deserts into granaries. ? - _ -
The reality is that democratic redistribution of control - -
over agricultural resources has historically been shown
to result in dramatic production advances in countries
as different as Japan, Taiwan, China and Egypt; more-
over, it is the only guarantee that the hungry will eat. -
-
?
MYTH THREE: An underdeveloped country's besp-
hope for development is to export crops in which it htis
. a natural advantage and use the earnings to import
CJANFOR &MO Olt UAW 24 (X) 1 2 poos,a.:
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71 HERE IS nothing natural about concentrating on a
1 few, largely low-nutrition crops. The same land
that grows cocoa, tea and sugar could grow an incredi-
ble diversity of nutritious crops. Nor is there any advan-
tage. Reliance on a limited number of crops generates
economic as well as political vulnerability. -
Among the many flaws in the natural advantage
theory, the most serious is that the people who benefit
from the foreign exchange earned by the 'agricultural
exports are not the people who work to produce those
exported crops and who need food. Even, when part of
ei exchange earned is used to import food, it is
enerally ot the needed staples but items to satisfy the
testes of the better-off urban classes. In Senegal,, the
choice land is used to grow peanuts and vegetables for.
export to Europe. Much of the foreign. exchange earned
is spent to import wheat for foreign-owned mills that
turn out flour, for French-style bread for ,the urban
dwellers.
Indeed, the very success of export agriculture can fur-
ther undermine the welfare of the poor. When world
commodity prices go up, self-provisioning farmers may
be pushed off the land by cash crop producers seeking
to profit on the higher commodity prices. An increase in
the world price of a commodity can actually mean less
income for the plantation worker or the peasant pro-
ducer. When the price of sugar on the world market in-
creased several-fold a few years ago, the Teal wage of a
cane cutter in the Dominican Republic actually fell to
less than it was 19 years earlier. A nominal increase in
the wage of the cane cutter did not compensate for the
inflation set off by the sugar boom. -
Governments fixated on agricultural exports suppress
labor reforms they believe would make their exports un-
competitive. Furthermore, in countries such as the Phi-
lippines, governments exempt land producing for ex-
port from land reform, and thereby not only maintain
the poverty of the rural landless but further undercut
food production as growers shift to export crops to avoid
redistribution. ? .
By contrast, food self-reliant policies would measure
success in terms of the welfare of the people, not export
income. Food self-reliance is not isolationist. But trade
would become an organic outgrowth of development,
not the fragile hinge on which survival hangs. Clearly,
no country can hope to "win" in international trade as
long as its people's very survival depends on selling one
or two products. Once the basic needs are being met,
however, trade will no longer be at the cost of the food
well-being of the people, as evidenced by countries such
as Cuba and China..
MYTH FOUR: Hunger is a contest between the Rich
World and the Poor World.
ri ERNIS
kfLA PrrIeNgsaP2V021;
I, make us th . n rmA y t ungry masses, w
realit htin_er afflicts the lower rungs in both
;
23
e treme power inequ es ecomes a smokescreen for
so- the usurpation of food resources by the few for the few.
called developed a derdeveloped countries. Worse
still, the "rich world" versus "poor world' scenario
makes the hungry appear as a threat to the majority in
countries like our own. In truth, however, the problems
of the hungry will never be addressed until the majority
in the United States can see that the hungry abroad are
their allies, not their enemies.
The poor majority in underdeveloped countries and
ordinary Americans are linked through a common
threat: the tightening of control over the most basic
human need ? food ? both within countries and on a
global scale. The very process of increasing concentra-
tion of control over land and all other productive resour-
ces that we have identified as a direct cause of hunger in
underdeveloped countries is going on right here at
home. Only 5.5 per cent of all farms in the United States
have come to operate over one-half of all land in farms.
The resulting landlessness and joblessness in rural
America are at the root of much of the persistent hun-
ger in the midst of agricultural bounty. In food manu-
facturing, the top four firms in any given food line con-
trol, on the average, over half of the market. In 1972, the
Federal Trade Commission staff calculated that such olie
gopolies in 13 food lines cost consumers $2.1 billion in
overcharges. For the 1 out of 10 Americans who.must
spend 69 per cent of all income on food, such- inflated
prices mean undernutrition.
Many of these Same oligopolistic corporations are now
expanding their operations into underdeveloped coun-
tries. Multinational agribusiness is busily creating a
Global Farm to serve a Global Supermarket. Finding
production sites in underdeveloped countries, where
land and labor can cost as little as 10 per cent of state-
side costs, large food corporations are shifting produc-
tion of high-value items ? vegetables, fruits, flowers
and meat ? out of the industrial countries. They find
ready partners in foreign elites who, given the increas-.
ing impoverishment of much of the local population,
face a stagnated internal market for their production.
In the Global Supermarket the poorest in the Philip-
pines, Colombia and Senegal must reach for food On the
same shelf as-hundreds of millions of consumers around !
the world. Every item has a price and that price is deter- !
mined by what the Global Supermarket's better-off cus-
tomers are willing to pay. And the sad reality is that
even Fido and Felix in. countries like the United States -
can outbid the world's hungry. Consumers in the in-
dustrial countries unwittingly become a suction force,
diverting food resources in the underdeveloped coun-
tries away from local needs. ? .
And the significance for us? In our country, farmers I
and workers are losing their jobs as agribusiness roants
abroad. The United States imports annually between $9
- billion and $10 billion in agricultural products, two- 1
thirds of which compete directly with what farms grow I
here. Moreover, a Global Farm gives the U.S. govern-
ment further rationale for supporting political and eco-
nomic structures abroad that block hungry people from
growing food for themselves. Nor should we conclude
that consumers here get cheaper food. Studies show that
lower production costs for food oligopolies on foreign
soil do not get passed on to consumers. -
The Global Supermarket is the type of interdepend- I
: Clgikedair
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7747;7
Dear Zygmunt:
I consider my visit "postponed" and look forward
to the opportunity to be with the Council at some
future date, so please try me early in 1978 as you
suggest,
Thank you for your kind words and best wishes.
This is going to be a challenging job, but I am
looking forward to it.
Yours,
STANSFIELD TURNER
Admiral, U.S. Navy
Mr. Zygmunt Nagorski
Director
The Thomas J. Watson Meetings
Council on Foreign Relations, Inc.
The Harold Pratt House
58 East 68th Street
New York, New York 10021
F).?vt!r?vr,-erii
g g
ILLEGIB
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