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WEDNESDAY, NOVEMBER 14, 1951 \ THE DAILY TIMES-GAZETTE waning [] --_-- PAGE SEVENTEE "rt $70 Million S urplus Due Pop App iy py x ™_ 1 LR. Th.1:2 In buagel 10r rasisiail ---- Pakistan's economy today is flourishing, due largely to the country's possession of two major raw materials--jute and cotton-- both currently highly priced on the world market writes Egon Kasko- line in The Christian Science Mon- itor. Recent foreign visitors to the Moslem dominion agree that, de- spite the handicaps of its geo- graphic position -- Pakistan is div: ided into two parts, separated by 1,000 miles .of Indian domain -- national economic unity has been achieved to anamazing degree. Despite the fact that Pakistan devotes a major portion of its re- venues to national defense, the country currently has a® substan. tial budget surplus and has even been able to reduce taxes. The Pakistani budget for 1951- 52, as recently presented by for- mer Finance Minister Ghulam Mo- hammed, shows an expected sur- plus of approximately $70,000,000. Pakistan is devoting almost 60 per- cent of its public funds to building up a strong Army, Navy, and Air Force, and most of the budget sur- plus probably will be used to build a new armament and ammunition industry. , But money has been pouring in- to the Pakistani treasury to a de- gree that income tax rates have been cut. IMPORT DUTIES CUT Import duties are also in the process of reduction, especially for raw materials needed for Pakis- tan's new industries. At the same time, Pakistan's balance of de showed a monthly surplus of 50, 000,000 rupees during 1950-51. Pakistan's Government has been able to collect considerable a- mounts of money by imposing ex- port duties on raw material ex- ports. The duty on raw cotton, for instance, has been increased by 1,000 percent during recent months. It is, therefore, actually Pakistan's foreign customer who pays a large part of Pakistan's armament budg- ef t. As international raw material shortages continue, Pakistan's ex- poor boom will probably also con- tinue for some length of time. Countries like Great Britain, the United States, and Japan were eag- erly accepting Pakistan's mater- ials when such products were ex- cluded from the Indian nfarket. India, once Pakistan's best cus- tomer, now occupies only ninth place on Pakistan's trading list. Despite India's defection, the val- ue of Pakistan's jute exports in 1950 increased to 450,000,000 rupees against 145,000,000 rupees in 1949 and that of its cotton shipments in 1950 to 418,000,000 rupees against 254,000,00 rupees the year before. Nevertheless , much encourage- ment is being given by Pakistani leaders to the development of new industries, lest Pakistan remain only a producer of certain raw materials. The Pakistani Govern- ment is trying hard to induce foreign capitalists to invest their funds in the development of Pak- istani industries. Foreign invest- ors receive considerable tax ex- emptions, and the government is prepared to furnish part of the funds needed for the establishment of new enterprises. Yet, despite official encourage- ment given to industrial projects, progress in this field has been slow on the whole. Agriculturally, Pakistan is extremely fortunate. It produces not only highly priced commercial crops but it also 'is fortunate enough to find itself , self-sufficient in all major food items, such as rice and wheat. MOSTLY AGRICULTURAL But the country continues to be overwhelmingly agricultural with Advocates New Policy 0f Defence London (Reuters) -- A new Commonwealth defence policy is suggested by a writer in the 1951 edition of Brassey's annual armed forces yearbook. The yearbook, published yester- day, is an authoritative collection of facts, figures and stragetic theories compiled by. Britain's top military writers. It contained an aritcle on Com- monwealth defence by Brig. C. N. Barclay which urged: 1. Each Commonwealth country, in addition to providing for its own defence, should have in peacetime regular forces of all services: to garrison adjacent undeveloped ter- ritories and also a reserve for use within a certain area in ah emer- gency. Canada would defend the Arctic and provide a strategic re- serve to help in Europe if war comes, 2. The commitments of the Brit- ish army, navy and air force should be confined mainly to the defence of Europe, the partial defence of sion of a Commonwealth strategic reserve normally located in the United Kingdom. 3. Colonial forces on the lines of the old Indian army should be formed, mainly from African volun- teers, with the primary object of garrisoning the Middle East. 4. Each Commonwealth country should maintain part - time forces for home defence and as a frame- work for expansion in a major war, on the lines of the Territorial (re- serve) army and similar forces al- ready existing in the older Dom- inions. Barclay said the views are his | own and have no official backing. fp At Ottawa there was no com- ment. less than 1 percent of its popula- tion occupied in large-scale in- dustries. Pakistan is short in some major raw materials, basic for in- dustrial development, and most of its industries depend on raw-mat- erial imports from abroad. Today, Pakistan can afford to buy these materials on the markets, but, in case of an emergency, Pakistani industry could be cut off from its supply sources. What has been done industrially in Pakistan in recent years is mostly due to government initia- tive rather than to private enter- prise, although many Pakistani leaders are devoted to the western concept of free enterprise. In most industrial plants which were recently built, such as jute mills, paper factories, and metal- lurgical plants, the government controls more than half of the shares, due largely to the un- availability of private capital. In like manner, public utilities, such as the railways, post office and telegraph, hydro-electric pow- er, telephone, radio, and social ser- vices are entirely state-owned. 'The government now has started to devolop major irrigation schemes in the Punjab and Sind provinces. However, recent oil drilling con- cessions were granted to American and British petroleum companies. 8 KING ST. E DIAL 3-2245 SERVE YOU WELL YOUR REXALL DRUG STORES IN OSHAWA ARE 530 SIMCOE ST S DIAL §- 3546 YOU MONEY TO TRADE] OF ONTARIO... a LIVE Province THIS PUBLIC INFORMATION FEATURE Lemon Mart&-Son [ARKS. Ontario producers account for 25% of the net value of Canada's agricultural pro- duction. 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Yet he doesn't talk much about the future of the small car which means that conditions will dictate the trends. Until then, he believes the American car owner is too accustomed to normal Sized automobiles to give them up with- out a struggle--if ever. Costs Tax Budgets A | motorists," a top engineer de- clared. From the British side of the ocean, however, they are wonder- ing if high taxes 'high gasoline prices, increasing insurance costs, license fees, and charges for regis- trations will not force the Amer- icans into small economy cars. "Something has to break some- where," a British manufacturer told the writer in Boston. And if the break takes the form of a speedy retrenchment in Ameri- can motoring budgets, the British motor industry will be in posi- tion to take up the slack. Similar motoring costs forced the European motor business into small-car production. By the same token, Americans could turn sud- denly to the purchase of the "gen. eral economy car." 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