Progress to date.-In fiscal year 1953 the University of Wyoming sent a director of vocational agriculture and three instructors in that field to the existing agriculture school in Kabul. Together with Afghan officials a joint program for expanding and strengthening this school was developed. Thirteen Afghans were brought to the United States for training at the University of Wyoming, 10 in the field of agriculture, 3 in engineering. Helmand Valley team, $565,200 The United States team of experts in the Helmand Valley will assist in soil analyses and surveys; the development of an experiment station; research on size of farm units, credit facilities, and marketing institutions; providing information to new settlers on irrigation techniques and agricultural practices (through Afghan extension workers); and planning the location of irrigation canals and settlement areas. Progress to date.-In fiscal year 1953 United States technicians on the Helmand Valley team helped the Afghan Government to draw up a plan for the establishment of an Afghan Helmand Valley Authority to direct the development of Helmand Valley lands. The team also provided advice to the new authority in solving major land-use problems. This advice was eagerly sought and a strong cooperative relationship with Afghan authorities was established. Locust control, $15,000 Participation in international cooperative action to deal with these insect pests, which range from the Sahara to the Indus plains. Progress to date.-Locust swarms did not settle in Afghanistan in the past year. The regional control program, however, indirectly benefited the country by eliminating swarms at earlier stages. Health and sanitation Total United States contribution fiscal year 1954. $180,000 6. 5 Objectives: To provide adequate training in elementary sanitation and disease control to the many settlers in the Helmand Valley as an integral part of the land settlement and development program in that area. MAJOR ACTIVITIES IN FISCAL YEAR 1954 Health teams, $155,000 Two public-health teams, each composed of a doctor, nurse, and sanitarian to train a corps of Afghan subprofessional and village-sanitation health workers. Progress to date.-In fiscal year 1953 a doctor and a sanitary engineer initiated a survey of the health needs in the Helmand Valley and developed plans for training a corps of subprofessional health workers. Medical training, $25,000 Five Afghan students to receive professional medical training at the American University in Beirut. Progress to date.-In fiscal 1953, 3 grants were awarded Afghans for study in medicine at the University of Beirut. The three Afghans have done well and proved the feasibility of sending other Afghans to this school. Education Total United States contribution___ MAJOR ACTIVITIES IN FISCAL YEAR 1954 $165, 000 11 6 Afghan Institute of Technology and Habibia College, $60,000 Five instructors for the Afghan Institute of Technology, the best and most modern Afghan school devoted to the training of young men in technical and mechanical skills. Grants will also be made to supplement salaries of American teachers at Habibia College and cover travel expenses of their dependents to Afghanistan. These teachers are hired by the Afghan Government, which cannot 33064-53-68 afford to pay adequate salaries and is, therefore, finding it increasingly difficult to recruit the desired caliber of teachers. Progess to date.-In fiscal year 1953 five instructors were made available to the Afghan Institute of Technology. By the end of calendar year 1953 the school will have graduated its first 3-year class, a significant achievement in this field in Afghanistan Much progress has also been made in training Afghan teachers to replace the American teachers. In 1953 grants were given to Habibia College, the oldest and best secondary school in the capital of Kabul, to supplement the salaries of the American teachers. This developed a much-needed incentive to the teachers already on the rolls as well as to those considering taking teaching jobs at the school. Teacher training, $65,000 In fiscal year 1953 it is proposed to provide six trainer-instructors for Afghanistan's Teachers' College, which shows great promise in meeting Afghanistan's needs for skilled teachers. Objectives: To assist Afghanistan in exploiting its fuel and other mineral resources. MAJOR ACTIVITIES IN FISCAL YEAR 1954 Coal mining and minerals, $100,800 Two engineers will continue work begun in fiscal year 1952 and fiscal year 1953 as adviser to the Ministry of Mines on the exploitation and use of coal reserves. A metals engineer will continue the work, begun late in fiscal year 1953, of exploring Afghan resources of beryllium, copper, and sulfur. He will also assist the Ministry of Mines in determining the best possible methods of exploiting the deposits discovered. The field equipment needed by these engineers will be provided. Progress to date.-Both Karkar and Isphushta coal mines have yielded higher coal output. Fire hazard has been greatly reduced. Ministry of Mines has been influenced to provide better living conditions for Afghan miners. Objectives: To implement programs on road development which the Afghan Government is undertaking by providing training in roadbuilding to qualified Afghans in the United States. MAJOR ACTIVITIES IN FISCAL YEAR 1954 Bring 5 Afghan trainees to the United States, $25.000. IV. OTHER TECHNICAL ASSISTANCE PROGRAMS The first United States economic assistance rendered Afghanistan was an Export-Import Bank loan in 1950 for $21 million granted to supplement funds allocated by the Afghanistan Government for the Helmand Valley project. Assistance by the United Nations and its specialized agencies was initiated in 1950. FAO has assisted with cotton production and the karakul sheep herds and advice on agricultural development and veterinary sciences. UN-TAA is advising on general economic development and on the development of ground-water resources. UNESCO is working in the fields of technical education and primary teacher training. WHO is working with the Government in the field of malaria and venereal-disease control as well as advising on maternal and child-health care. Supplies and equipment for this last project are being furnished by UNICEF. Indonesia is made up of about 3,000 islands, with a total land area exceeding 550,000 square miles (twice the size of Texas) stretching 3,000 miles along the Equator. Three-fourths of the national income comes from agriculture. About 70 percent of the value of exports is made up of agricultural products from Indonesia's volcanic-enriched soil. In 1952, 6.1 million tons of rice were produced (but an additional 750,000 had to be imported). In 1951, 804,000 tons of rubber were produced, most of which was exported; corn, cassava, and sweetpotatoes are other major crops. Indonesia's oil resources are considered the most important in the Far East, ranking high in world production. A fifth of the world's tin comes from Indonesia. Bauxite and lignite are important. Human Indonesia's population is estimated at 78 million, two-thirds of which is concentrated in Java and Madura. Three-fourths of the population are engaged in agriculture. In addition to the new national language, Bahasa Indonesia, over 200 dialects are spoken; 85 percent of the people are illiterate. English is the second official language. Hindu, Moslem, and western cultures have left their imprint on Indonesia. Life expectancy is estimated at only 32 years. Surveys indicate a birth rate of 28 and a death rate of 20 per 1,000, so that the population continues to expand rapidly. Malarial incidence is estimated at 30 percent, with mortality ranging from 20 per 1,000 in Javà, to 40 per 1,000 in the endemic areas. Capital Indonesia's gross national product in 1951 was estimated at $3,100,000,000, with an income of approximately $40 per capita. In 1952 budgeted expenditures ($1,200,000,000) exceeded revenues ($823 million) by about $380 million. At the end of 1952, Indonesia's national debt was 10,167 million rupiahs ($892 million). In 1952 there was a serious deterioration in Indonesia's balance of payments, because of lower prices for rubber and copra; and, as a result, Indonesia's foreign exchange and gold holdings declined from $450 million early in February 1952 to $287 million as of March 1953. II. GENERAL SITUATION Indonesia was born in a revolutionary struggle for freedom which followed hardships and destruction suffered in World War II. The nation continues to face enormous problems in establishing law and order throughout its vast territories, and in initiating constructive programs to improve economic conditions. Indonesia's most urgent economic problem is inadequate food production. Even with increased imports, food availability per capita is considerably lower than prewar. The increasing rice deficit is one of the greatest threats to Indonesian economic and political stability. Daily per capita food consumption is estimated at only 2,125 calories. Diets are generally deficient, especially in minerals, fats, and essential vitamins. The island of Java is beset by serious overpopulation. Underemployment is another serious problem facing the new nation; at the same time, lack of trained technicians, administrators, professional personnel, and skilled workers is a major problem. This situation is further aggravated by the lack of indigenous capital-traditionally business and commerce have been handled by the Dutch and Chinese. Although the Indonesian Government has not formally adopted a comprehensive plan for economic development, several guides have formed the basis for most agricultural and industrial projects undertaken. A government plan in agriculture would make Indonesia self-sufficient in food production and consumer necessities and raise standards of living by expanding and intensifying cultivation of all arable lands, by increasing yields, by establishing farming training and information centers, and by transmigration of 20 million persons from Java to Sumatra, Kalimentan (formerly Borneo), and Sulawesi (formerly Celebes). The industrial development plan envisions both short- and long-term assistance to small and large industry. In addition to the economic plans, the Ministry of Education is moving ahead with its 10-year compulsory education plan and the Ministry of Information has its 5-year mass education plan. The Indonesian Government has recently organized a central planning bureau, and the first U. N. experts for the bureau have arrived in Djakarta. It is anticipated that this body will prepare an integrated overall plan of development for Indonesia. Objectives III. THE PROGRAM Assist Indonesia in meeting three of its most critical economic problems: Shortage of foodstuffs, low industrial productivity, and lack of trained Indonesian technicians and professionals. These objectives will be met specifically by assisting in Improving technical competence of agricultural workers, primarily through extension methods; Training technicians in the crafts and in industry, as well as rehabilitating and extending small-scale production units; Improving and developing educational methods which can reach the masses of the people, and improving indigenous schools and training facilities. Chronology of agreements The original ECA agreement with Indonesia was signed in October 1950. Under this agreement a special technical and economic mission was established and roughly $8 million economic and technical aid was extended annually for fiscal year 1951 and fiscal year 1952. Certain assurances were required from recipients of United States military and economic aid. On January 5, 1952, the Indonesian Government gave such assurances which led to a widespread suspicion that Indonesia's policy of independence in foreign relations might thereby have been infringed and this contributed to the fall of the cabinet on February 23, 1952. Nevertheless, the Indonesian Government continued to honor its January 5 agreement and the program has proceeded, under TCA administrative responsibility after June 1952. The Indonesian Government took the initiative in negotiating a new agreement, signed January 12, 1953, which provides for the continuation, on a grant basis, of only economic aid. Financing Under ECA and MSA programs, local currency costs were financed directly from the budgets of the individual ministries carrying out projects. In addition, the ministries concerned also deposited into a special rupiah counterpart account the commensurate value of United States commodity assistance. Under the TCA program in Indonesia, it is intended that releases from the counterpart account, to be supplemented by new Indonesian Government deposits, will help finance the internal costs of the jointly planned projects. The fiscal year 1954 program will involve local costs estimated at $8.4 million. The exact amount of such local cost will only be determined after consultation with the Indonesian Government. Program costs [Costs in thousand dollars] Agriculture, Forestry and Fisheries United States, cost. Number of United States technicians-- $1,320,000 54 82 Objectives: Major effort will be directed toward helping Indonesia become selfsufficient in its basic foods, particularly rice. The Indonesian Government has adopted a plan to attain this goal within 5 years. MAJOR ACTIVITIES IN FISCAL YEAR 1954 Land development and conservation, $494,000 United States engineers will continue to give operational assistance to landdevelopment-machinery pools, and technical advice and agricultural engineering instruction to assist in opening new lands for settlement. Limited supplies and equipment directly needed by these technicians are included. Progress to date.-A sum of $6 million has been obligated for agriculture, forestry, and fisheries activities in the years 1951 and 1952. In 1953 $1.1 million was allocated for these activities. Ertension and research, $320,000 In an attempt to bridge the gap between the research station and the farmer, experts will help the Indonesians build up their very short supply of support personnel, to backstop extension workers as well as assist in developing new educational materials and methods suitable to the area. Progress to date.—An irrigation program has supplied supplemental irrigation and doubled yields on some 7,500 acres. Ten thousand tons of fertilizer have been distributed. Three hundred and seventy-five thousand hoes, twenty-five thousand machetes, twenty thousand axes, and other agricultural implements have been distributed in the provinces to help replace wartime destruction and deterioration. Rice and corn breeding, $145,000 Corn-production experts will continue work with their Indonesian counterparts in developing strains suitable to the area. Progress to date.--New and more productive cori strains have been developed. A large rice-production program in Borneo will rehabilitate about 370,650 acres of old rice fields and gradually bring about the reclamation of immense marshy areas. Fisheries, $200,000 In fisheries MSA and TCA have in the past provided assistance principally in the form of boats and engines. As a second step, assistance will now emphasize instruction in fishing methods, development and use of gear and storage, as well as transporting and marketing methods. Progress to date.-Eighty motorized fishing boats and 340 engines for locally built boats have been provided on an experimental basis and have increased yields of some fishermen 10 times. Estimates indicate that sea fisheries production in 1952 increased 15,000 tons over 1951, thus helping to alleviate the protein shortage in the Indonesian diet. Other activities, $161,000 Assistance will be provided in animal husbandry, servicing of rural credit cooperatives, and in improving the processing of small-holder rubber production. Progress to date.-Two coperative leaders recently returned from training in the United States has established: (1) a coperative insurance society which had 3,000 policies in effect within 6 months of its information; (2) a cooperative federation magazine with a paid circulation of 5,000. They have reported on their trip to 10,000 people at 100 village meetings out of which 36 cooperatives with over 2,000 members were organized as of October 1952. Objective: This program will concentrate on the same areas where agricultural and industrial activities are going on in order to demonstrate the connection |