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Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
November 9, 2016
Document Release Date: 
December 1, 1998
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Publication Date: 
April 20, 1953
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PDF icon CIA-RDP83-00423R000301170001-8.pdf95.53 KB
ljEL Wroved for -Release 19 We s ! ~? i 20 April 1953 F 8S-00423R000301170001.8 .b,iect: Uncertaint.;r Among Foreign Investors%Zabor velai,ions/ffect of Lan 'eform on Tire Business 25X1X6 to put pressure on _nci.ividi?al firms to exact payment for relief as ther J's no d-`iscriminati_ou shown. to support this pro;ram, but foreign investors live and -er a -constant threat of it. There is no reason to suspect that the program is ."esigi Intense nationalism and prire are causing the Indian Government to d o contradictory things that leave foreign companies uncertain about what to expect. Indians welcome foreign investment in enterprises which they feel they lack ei_th~jr funds or know-h.ow to d?o themselves. At the same time they put establishe-'? foreign firms under constant pressure to put Indian nationals into higher executive positions and openly favor any Tn Tan firm that inertakes to compete. So far, there is no le islation 2. In their haste to rid themselves of foreign "domination", the Indians ispose_= of technical people and then learner' the-.)r were unable to handle necessary projects. They have had to swallow their pride an- call in engineers to assist in such work as irrigation an`! h,rd'ro-electric develop- ment. Their pride ani perhaps their experience under Britis: rule make Indians suspicious that foreign firms are exploiting them and there is a constant threat of price con rols, At present, there is-a so-calle'a tariff investi- gation of the tire industry which is probably a prelude to such controls be_i_n?g establishes Prices are about the same as in the U.S. visory level. One US plant continues to have constant trouble with labor. Although they pay higher wages and1 furnish more fringe benefits than other employers, the other employers live peacefully with their help. The US firm can only conclude that they nave been singled out for persecution. The fact that t''le;y are the largest foreign owned plant in their area woulr. make them the top example of "Yankee imperialism", but the;,r have never been able to prove their trouble waa i ospirec by communists. C-n The chief .rleman,- of their Indian labor is for a greater bonus. ':;'his has grown in some cases to as much as five months extra pay per year. The ?"M "he land?.. reform programs have already hoe a noticeable effect on tire sales: The large land holders used automobiles, trucks, tractors, an:=d other mechanized farm equipment which the small operator cannot afford. It des not seem possible that India can expect as much badly needed foot' under the Approved For Release 1 =9109Ji O `ClAAD1RQ3 fl 2y 10 V1 proposer programs. 9~i~~i Gri"y " l ;Tux to F r r? Sin ~~~.