89 



lauded at the United Nations Scientific Conference on the Conserva- 

 tion and Utihzation of Resources, held in 1949.^^ And Stephen 

 Raushenbush, who was a participant in the U.N. Conference suggested 

 that the point IV program allocate a significant amount of resources 

 to studj'mg this alternative: 



In addition to the presently known methods of increasing the land's produc- 

 tivity, there are others that may reasonably be expected during the next 50 years. 

 One of them is the development of a cattle fodder through algae. A large amount 

 of the now useless marsh area of the world might be used in this way. The fat 

 production might be in the ratio of 3 to 1 in comparison with an acre of land put 

 into peanuts or soybeans. There are also new protein and fat yeast processes, now 

 using tropically grown molasses as a raw product. If the algae can be substituted 

 as a raw material, the productivity of an acre of pond (plus the necessary process- 

 ing plants) might be in the ratio of 20 to 1 for dry land.^2 



Business 



The private business community exerted considerable influence on 

 the point IV decision process for two reasons: (1) The business com- 

 munity provided an alternative to public financing; and (2) business 

 leaders i^romised that private initiative would play a valuable role in 

 overseas development. In order to buttress their arguments, business 

 spokesmen circulated figures to exemplify the extensive business 

 experience they had in the underdeveloped world. Fortune magazine 

 estimated that in 1948, $10 billion was invested abroad by private 

 business interests. ^^ Time magazine stated that $400 million had been 

 invested annually since the end of World War II by American business. 

 Time also stated that while the return on capital invested domestically 

 averaged 13.8 percent, that on capital invested abroad averaged 15.6 

 percent. 



^lembers of Congress repeated these assurances of business com- 

 petence to take a leading role in development programs. Representa- 

 tive Thurmond Chatham told the House: 



I have been in business all my life, and I know something about the American 

 business system. I think I know something about technological skiUs, I think I 

 know something about business knowledge, and I think I know about improve- 

 ments. The American way of life is founded on the American business system. 

 There are three classes of production throughout the world: The miner, the 

 farmer, and the manufacturer. We have built up the American sj'stem through 

 technical knowledge and through technical skills. There is no earthly reason why 

 we cannot help other countries whether they be backward areas or not — these 

 Western European countries, for instance, by giving them our technical skills.^* 



However, difficidties inherent in private overseas business operations 

 which would prevent this sector from contributing valuably to the 

 program were isolated and discussed by social scientists. Galbraith 

 challenged the contention that the U.S. business had a history of 

 valuable experience in foreign technical assistance. 



" The following papers were contributed: F. Neville Woodward, director, Institute of Seaweed Research, 

 Inveresk Gate, Musselburgh, Midlothian, Scotland. "Creatable Resources: The Development of New 

 Resources by Applied Technology"; G. E. Hilbert, Chief, Bureau of Agricultural and Industrial Chemistiy, 

 U.S. Department of Agriculture, "The Contribution of Chemurgy"; J. A. Hall, Director, Pacific Northwest 

 Forest and Range Experiment Station, U.S. Forest Service, Portland, Oreg.,"VVood Fiber: Creatable Re- 

 source of Wide UtOity"; Harry Lundm Royal Institute of Technology, Stockholm, Sweden, " Fat Synthesis 

 by Micro-Organisms and its Possible Applications in the Food Industry"; A. C. Thaysen, Colonial Micro- 

 biological Research Institute, Trmidad, British West Indies, "Food Yeast in the British Empire"; and 

 Ernst D. Bergmann, Weizmann Institute of Science, Rehovoth, Israel, " Agricultui'al Products as Starting 

 Materials for the Chemical Industry." In United Nations. Department of Economic ASairs. Proceedings of 

 the United Nations Scientific Conference on the Conservation and Utilization of Resomxes, Aug. 17-Sept. 

 6, 1949. Lake Success, N.Y. Vol. I, plenary meetings. (Lake Success, N.Y., United Nations, 1950), pp. 

 129-165. 



»2 Stephen Raushenbush. " People, Food, Machines." No. 5 in the Bold New Program Series. (Washington, 

 D.C, the Public Affairs Institute, 1950), p. 17. 



" "Point 4— Has U.S. Capital tlie Incentive to Carry It Out?" Fortune. February 1950, p. 182. 



91 Statement of Representative Chatham, "Foreign Economic Assistance." Consideration on the floor of 

 the House, Congressional Record (Mar. 31, 1950), p. 4528. 



