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Rhetoric and Reality: Corporate America's Perceptions of Southeast Asia, 1950–1961

Published online by Cambridge University Press:  13 December 2011

Lodge Gillespie Jr.
Affiliation:
J. Lodge Gillespie, Jr., is currently an editor with McGraw-Hill's Financial Information Services Group in Charlottesville, Va.

Extract

This article challenges both those historians—represented primarily by neo-colonialists and World Systems theorists— who stress economic factors as motivations of U.S. policy in Southeast Asia during the 1950s. Although such analyses provide valuable insights into American foreign policy, neither the desire to secure the markets and raw materials of Southeast Asia for American industry nor the perceived need to preserve a capitalist World System offers an adequate explanation for the American commitment to Southeast Asia. Using the business press and trade journals as primary sources, this article examines the public remarks and activities of the American business community throughout the decade; it concludes that, despite their frequently strong rhetoric, business leaders were generally ambivalent about the proper course of action in Southeast Asia and about the region's importance to American interests. The research presented here suggests that other, non-economic, factors may better explain U.S. policy in that region during the 1950s.

Type
Articles
Copyright
Copyright © The President and Fellows of Harvard College 1994

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References

1 Divine, Robert A., “Vietnam Reconsidered,” Diplomatic History 12 (Winter 1988): 92CrossRefGoogle Scholar.

2 Some definitions are needed. I use the term “business community” throughout the essay to describe the top executives of America's largest corporations and financial institutions. In no way do I mean this to imply that these men (those I discuss all were men) acted and thought as a homogenous community. Indeed, as will be clear in the essay, they expressed widely different opinions and favored different actions. I define Southeast Asia primarily as Indochina (Vietnam, Cambodia, and Laos), Thailand, Burma, Malaya, Indonesia, and the Philippines. Larger geographical areas such as South Asia and the Far East are mentioned in the opinions expressed by business leaders; both designations include Southeast Asia, but also indicate the entire region between Pakistan and Japan.

3 Williams, William Appleman, The Tragedy of American Diplomacy (New York, 1959), 269–71, 273–74Google Scholar.

4 See Kolko, Gabriel, The Roots of American Foreign Policy: An Analysis of Power and Purpose (Boston, Mass., 1969)Google Scholar.

5 See Domhoff, G. William, “Who Made American Foreign Policy, 1945–1963?” in Corporations and the Cold War, ed. Horowitz, David (New York, 1969), 2569Google Scholar. For further evidence on the intimate connections between business and government, see Bergsten, C. Fred et al. ,, American Multinationals and American Interest (Washington, D.C., 1978), 319Google Scholar; and Kolko, Roots of American Foreign Policy, 13–26. For a full discussion of the neo-imperialist motives of American foreign policy, see Magdoff, Harry, The Age of Imperialism: The Economics of U.S. Foreign Policy (New York, 1969)Google Scholar, and Gardner, Lloyd C., Imperial America: American Foreign Policy since 1898 (New York, 1976)Google Scholar. Also see Shalom, Stephen R., The United States and the Philippines: A Study of Neocolonialism (Philadelphia, Pa., 1981)Google Scholar.

6 The first quotation is from Kolko, Gabriel, Anatomy of a War: Vietnam, the United States, and the Modern Historical Experience (New York, 1985), 7273Google Scholar; the second is from Kolko, , Confronting the Third World: United States Foreign Policy, 1945–1980 (New York, 1988), 55; see also Kolko, Roots of American Foreign Policy, especially 48–87Google Scholar.

7 Kolko, Confronting the Third World, 56, 60. Kolko's difference from World Systems theory is clear: “While there were many varieties of capitalism consistent with the anti-Communist politics the United States also sought to advance, what was axiomatic in the American credo was that the form of capitalism it advocated for the world was to be integrated is such a way that its businessmen played an essential role in it. Time and again it was ready to sacrifice the most effective way of opposing Communism in order to advance its own national interests. In this vital sense its world role was not simply one of resisting the left but primarily of imposing its own domination.” Ibid., 117; emphasis in original.

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14 Business Week, 23 Feb. 1957, 160.

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19 Business Week, 13 May 1950, 21; 13 Oct. 1950, 10; Guaranty Survey 30 (Jan. 1951): 17Google Scholar; Business Week, 16 May 1953, 17.

20 Kolko, Confronting the Third World, 54.

21 For a full explanation of the importance of the economic relationships between Japan and Southeast Asia, see Rotter, The Path to Vietnam, especially 35—48 and 127—40. See also Borden, The Pacific Alliance, especially 103—42.

22 National City Bank of New York, Monthly Letter on Economic Conditions, Nov. 1952, 131; Shepard's comment came from his address to the National Foreign Trade Convention in 1954: NFTC, Report 41 (1954): 329Google Scholar; Commercial & Financial Chronicle 172 (9 Nov. 1950): 24Google Scholar.

23 Business Week, 7 Jan. 1950, 86; 8 April 1950, 141–203.

24 Banking Journal 47 (Sept. 1954): 33Google Scholar. For a full discussion of the economic links among England, France, and Southeast Asia, see Rotter, The Path to Vietnam, 49–69 and 141–203.

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26 See Hughes, Barry B., The Domestic Context of American Foreign Policy (San Francisco, Calif., 1978), 157–64Google Scholar; Gilpin, Robert, U.S. Power and the Multinational Corporation: The Political Economy of Foreign Direct Investment (New York, 1975), 144CrossRefGoogle Scholar. Arguing from a statist point of view, Stephen Krasner has contended that the state is autonomous from outside interests in deciding foreign policy, and that with regard to foreign intervention following the Second World War, “economic goals… were… sacrificed to an ideological vision.” Krasner, Stephen D., Defending the National Interest: Raw Material Investments and U.S. Foreign Policy (Princeton, N.J., 1978), 345Google Scholar. For direct criticisms of Williams, Kolko, and other New Left historians, see Maddox, Robert J., The New Left and the Origins of the Cold War (Princeton, N.J., 1973)Google Scholar.

27 Goodyear Tire and Rubber Company increased production at its Indonesian plant in 1954. Business Week, 16 Jan. 1954, 150. B. F. Goodrich announced a $6 million tire factory in the Philippines, also in 1954. Business Week, 25 Dec. 1954, 57. Two months later, Goodyear also announced the construction of a manufacturing plant in the Philippines. Rubber Age 76 (Feb. 1955): 742Google Scholar. In 1956 Firestone announced construction of a $5.3 million plant in the Philippines. Business Week, 19 May 1956, 149.

28 Rubber Age 74 (Jan. 1954): 577–80Google Scholar; 76 (March 1955): 917.

29 Ibid. 70 (Jan. 1952): 483; 71 (April 1952): 88. The U.S. government was spending “close to “ $1 million for the development of natural rubber in Brazil, Colombia, the Dominican Republic, Haiti, Mexico, Panama, and Peru.

30 Ibid. 76 (Nov. 1954): 281; (March 1955): 917.

31 United States Investor 61 (26 Aug. 1950): 29Google Scholar; Rubber Age 69 (June 1951): 332Google Scholar.

32 Business Week, 22 March 1952, 9; 26 Aug. 1952, 110; Rubber Age 69 (June 1951): 332Google Scholar.

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34 Ibid. 77 (April 1955): 85.

35 NFTC, Report 43 (1956): 388–89Google Scholar.

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37 American Petroleum Institute, Annual Conference Proceedings [hereafter, API, Proceedings] 35, sec. 1 (1955): 93Google Scholar; 36, sec. 1 (1956): 93; 37, sec. 1 (1957): 97; 38, sec. 1 (1958): 93.

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39 World Oil, Aug. 1950, 23; API, Proceedings 35, sec. 4 (1955): 35Google Scholar. Daniel Yergin's recent book on America's desire for control of world oil supplies complements this evidence, as Yergin gives relatively little attention to Southeast Asian oil during the 1950s. Instead, He sees Middle Eastern and South American oil as much more important in American policy. See Yergin, The Prize, especially 409–518

40 API, Proceedings 30, sec. 4 (1950): 58Google Scholar.

41 Ibid. 37, sec. 4 (1957): 30.

42 American Petroleum Institute, Petroleum Facts and Figures (New York, 1959), 434Google Scholar.

43 World Oil, 15 July 1950, 226, 233; May 1952, 248.

44 Ibid., 15 Aug. 1954, 218; Ellis's quotation is found in American Bankers Association, Present Day Banking (1956), 91; Business Week, 29 Oct. 1955, 152.

45 World Oil, May 1957, 239–41.

46 Standard-Vacuum's investments in Indonesia dated to 1912, and California-Texas began its operations in 1931, with production beginning after the Second World War. Allen, G. C. and Donninthorne, Audrey G., Western Enterprise in Indonesia and Malaya: A Study in Economic Development (New York, 1957), 178Google Scholar.

47 Stanvac, for example, had operations in sixty-seven foreign countries in 1955, thus making its Indonesian operations a very small part of its total business. API, Proceedings 35, sec. 4 (1955): 35Google Scholar. As of 1958, Caltex was operating in seventy foreign countries. Banking Journal 51 (Nov. 1958): 45Google Scholar.

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49 Ibid. 38 (1951): xii; 39 (1952): xi; 40 (1953): xi.

50 Ibid. 37 (1950): 128; 39 (1952): 26; Commercial & Financial Chronicle 177 (28 May 1953): 38Google Scholar; see also text at notes 16 and 17.

51 Business Week, 1 Dec. 1951, 152–54; Banking Journal 50 (Nov. 1955): 174Google Scholar.

52 NFTC, Report 46 (1959): 254Google Scholar.

53 World Oil, 15 July 1950: 226–33; General Motors Corporation, Annual Report (New York, 1954), 19Google Scholar; Business Week, 2 April 1955, 106; U.S. Department of Commerce, Bureau of Foreign Commerce, Investment in Indonesia: Basic Information for United States Businessmen (Washington, D.C., 1956), 13Google Scholar. American firms operating in Indonesia were Caltex, Goodyear, Hawaiian Sumatra Plantations, International Rubber Company, National Carbon Company, Procter & Gamble, Stanvac, and United States Rubber Company. Ibid., 119.

54 Commercial & Financial Chronicle 172 (5 Oct. 1950): 39Google Scholar; 172 (30 Nov. 1950): 28; 175 (31 Jan. 1952): 28; 179 (6 May 1954): 1; 181 (17 Feb. 1955): 39; quotation in May 1954 issue.

55 NFTC, Report 43 (1956): 245–46; 44 (1957): 5–6; 47 (1960): 250Google Scholar.

56 Nation's Business 42 (Sept. 1954): 96Google Scholar.

57 Banking Journal 44 (Aug. 1950): 119Google Scholar.

58 Commercial, & Financial Chronicle 172 (7 Sept. 1950): 13Google Scholar. Dodge cited “communist-led insurgencies in Burma, Indo-China, Malaya, Indonesia, and the Philippines.” He saw this as evidence of a worldwide Communist offensive led by the Kremlin. Ibid. 176 (9 Oct. 1952): 22. Black, noting Communist-directed insurgencies in Malaya and Indochina, argued that “what happens in South Asia in the next few years is likely to have a direct impact on our own future.” Ibid. 175 (26 June 1952): 13.

59 Ibid. 183 (28 June 1956): 4; 186 (10 Oct. 1957): 11; Banking Journal 44 (July 1950): 108Google Scholar.

60 NFTC, Report 39 (1952): 383Google Scholar; Commercial & Financial Chronicle 191 (9 June 1960): 22Google Scholar.

61 Guaranty Survey 29 (30 Sept. 1949): 14Google Scholar.

62 Ibid. 32 (Feb. 1953): 3.

63 Banking Journal 45 (Nov. 1952): 81Google Scholar.

64 NFTC, Report 47 (1960): 63Google Scholar.

65 Ibid. 37 (1950): 143–44.

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68 Domhoff, “Who Made American Foreign Policy?” 25–69; quotation on 25.

69 Joseph D. Phillips, “Economic Effects of the Cold War” in Horowitz, ed., Corporations, 188—89. See also Kolko, Roots of American Foreign Policy, 13—26.

70 Bergsten, et al., American Multinationals, 316—18.

71 “Despite all the rhetoric about the critical importance of Southeast Asia to Japanese, British, French, and Dutch rehabilitation, there is little reason to think that this area played a decisive role in the economic performance of the advanced industrial core.” Growing trade between Western Europe and Japan also diminished the importance of establishing trade links between Japan and Southeast Asia. Leffler, Melvyn P., A Preponderance of Power: National Security, the Truman Administration, and the Cold War (Stanford, Calif., 1992), 507Google Scholar.