UNCERATAINTY AMONG FOREIGN INVESTORS/LABOR RELATIONS /EFFECT OF LAND REFORM ON TIRE BUSINESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00423R000301170001-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 1
• Document Creation Date: November 9, 2016
• Document Release Date: December 1, 1998
• Sequence Number: 1
• Publication Date: April 20, 1953
• Content Type: REPORT

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 ~~~.