Canberra, 9 June 1967
New Papers
In this folder are the most recent cables, and a note prepared by Mr Pritchett that Sir Laurence1 has asked me to let you see.
2. The note really takes the form of some jottings on the theme that Asia is a land of promise and will reward expenditure of resources and effort. It is seen as giving you some points to expound, particularly to British ears, that do not rely too much on the argument that outlays now are likely to be rewarded by dividends in the future.
3. At the same time, the points you have been making about the smaller countries—Korea, Taiwan, Malaysia—remain valid. The difficulty is that the British think first of India and Pakistan. They have certainly not yet reached any clear point of take-off.
4. It may nonetheless be possible to point up, in answer to pessimistically cast points made by the British, at least some aspects of the situation in both countries:
(a) in political terms, neither India nor Pakistan have shown any real trend toward the communist camp;
(b) in social terms, the two countries seem to be managing, slowly, to achieve some cohesion, even if Kashmir has been one of the principal agents;
(c) in economic terms there are clearly difficulties, but in each country the national income has risen faster than the cost of living; exports have been increasing during the 1960s—by over 50 percent for Pakistan and over 20 percent for India (allowing for devaluation)—British exports over the same period have increased by 25 per cent; the cost of living has not risen too fast (around 25 per cent in India, Pakistan and Britain since 1960, compared with about 12 per cent for us).
I am not suggesting that the picture for either of these countries is unduly bright, but I think these figures could be used illustratively to rebut any display of downright pessimism.
5. What it all seems to mean is that in the countries of the South West Pacific there are real signs of progress, but that in the countries of the Indian Ocean that progress has hardly started. But this is not the reason for pulling out so much as for keeping up the effort, for acting responsibly. For American and Canadian audiences the message really is ’;Go West, young man!’—that Asia is the new frontier of today, and that to look back is to deny the trust imposed on us by the past. Even for British consumption, there is something in the point.
1 W.B. Pritchett, Head, Defence Liaison Branch, DEA; Sir Laurence Mcintyre, Deputy Secretary, Department of External Affairs.
[NAA:A1209, 1966/7335 PART4A]