Memorandum dated February 1966
To the Prime Minister, The Rt. Hon. H.E. Holt, M.P.
By Moira Dynon
In October 1966, India was still in the grip of a severe famine because of crop failures. The Australian Government had not yet made a decision as to how it would be prepared to help. Individuals and groups dedicated to helping India came together under the banner of ‘Food for India’ and two public meetings were held on 23 February 1966 in the Melbourne Town Hall. At the invitation of the cooperating groups, Moira chaired the crowded meetings.
Following the meetings, Moira wrote the following Memorandum regarding Australian food assistance to India was sent to Prime Minister Harold Holt, who had declined to receive a deputation from Food For India but had requested that the views and suggestions be submitted to him in writing.
Memorandum to the Prime Minister, The Rt. Hon. H.E. Holt, M.P. regarding Australian Food Assistance to India. February 1966
The Milk For India Committee wishes to bring the following points to your attention, regarding India’s need for food assistance now and in the immediate future and Australia’s capacity to assist.
The committee believes the Australian Government has shown some awareness of the Indian food crisis, indicated by—
(a) The $8 million gift of wheat, processed milk, pesticides and machinery announced by the Minister for External Affairs, Hon. Paul Hasluck, M.P. on 18th February, 1966.
(b) Co-operation with citizen efforts, particularly by the allocations of funds to cover freight costs and insurance of citizen’s gift consignments of processed milk sent to the Government of India for the needy.
(c) Assistance provided under Colombo Plan.
(d) Participation in the Asian Bank, the World Bank and other monetary arrangements.
We wish to point out that India’s need for assistance is still great and is likely to continue in the immediate future. May we refer to the Statements by the Secretary General of the United Nations, U. Thant, President Johnson and His Holiness Pope Paul, as well as to speeches by the Prime Minister of India, Mrs. Indira Gandhi, and the Indian Minister for Food and Agriculture, Mr. C. Subramaniam.
The Committee believes there is an overwhelming case for particularly generous assistance to India, not only on humanitarian grounds but also in the interests of long term trading and of political stability in India itself.
India is a country of about 470 million people, most of whom are badly undernourished. She is the largest nation in the world attempting to find national unity and stability by democratic process, and is our largest friendly neighbour in this area of the world.
It is important for the future democracy in Asia that India’s political experiment should succeed. Nothing is more likely to ensure its failure than a continuation of serious food shortages. The recent serious riots are disturbing. According to current Indian Parliamentary reports, it appears that extremist groups are endeavouring to make capital out of the food shortage situation.
Food For India Committee believes that Australia can help in the following ways:—
(a) By supplies of wheat (including Rycena), and processed milk and egg powder. In this regard we believe that Sir John Crawford, former Secretary of the Department of Trade has made a valuable suggestion. In a message to a public meeting in the Melbourne Town Hall on February 23rd, 1966 (called by the Food For India Committee) Sir John stated that non-exporting nations as well as traditional exporters should contribute to the cost of acquiring wheat on the needed scale. “Indeed it is high time that Europe, North America and Australia reached agreement with India on a supply programme designed to complement but not to replace her own programme for expanding production.” We urge the Australian Government to initiate a conference between nations of these areas to decide on a supply programme.
(b) Another way of helping India would be to accept full or part payment in rupees for food and other supplies. Some of these rupees could be used to finance Australian long-term development projects in India and to finance the “Grow More Food” projects (as is done with supplies of grain by the U.S. under PL 480.)
In addition to helping India, such a scheme would help the development of Australian special skills, for example, the further development of the Rycena industry. This scheme could help stabilise the flour industry in Australia and could also lead to more markets for flour in the form of Rycena. This could also be financed by trade arrangements for increased purchases of Indian goods.
The Committee believes that there is enormous potential for the Australian Diary Industry in providing long-term assistance to India. We would suggest an arrangement between the Australian Government, the Dairy Produce Board and the Dairying Industry for the supply of fixed quantities of processed milk on similar repayment terms, for a minimum fixed period of, say, ten years. We are informed that such an arrangement would be welcome by the dairying industry and greatly assist its development. At present the dairying industry receives Government subsidies of approximately $26 million annually. This scheme would help in the expansion of overseas markets and help to keep down the subsidy.
We believe the Australian Government should give further encouragement to realistic citizen projects in the following ways:
(a) Tax deductions on donations for Indian relief.
(b) Continuation of freight cost payments for all consignments of processed milk sent for distribution to the needy by the Government of India.
In this regard we would like to point out the valuable assistance given by State Governments in Australia, particularly those in the States of Victoria, Tasmania and South Australia, which provide free rail freight for citizens’ contributions of processed milk for India.
Another practical method of assistance would be for the Australian Government to encourage Australian investment in India by the promotion of the Government’s own scheme for Australian companies to insure their capital investments in less developed countries with the Government. This is a highly commendable scheme and if applied with emphasis on Indian food production plans (for example, fertiliser production, milk schemes, etc.) could be very valuable.
We recognise the difficulty in foreign investment in India. However, we believe that it is in Australia’s long-term interests for the Government to make investment less hazardous.
Indirect assistance to India can be given in the following ways: —
(a) Australian Tariff Preference Proposal Australian people should be made more fully aware of the Government’s action with regard to this proposal. In addition, the Government should examine the possibility of the extension of the number of items and the extension of the quotas which have been fixed. Australian representatives to continue to press for the adoption of this commendable and constructive Australian proposal in General Agreement on Tariffs and Trade.
(b) Expansion of Schemes whereby Australians with specialised skills and training (especially in the field of agriculture) spend fixed periods in India in research and field work.
(c) Extension of existing educational schemes in the Commonwealth Scientific and Industrial Research Organization, Australian Universities and other fields under which Indian specialists work in Australia for fixed periods for study and field work.