(2 of 2)
In the face of this growing problem, both the British and the U.S. have begun to apply pressures of their own. The British, who still control more than 80% of all foreign capital in India, have warned Nehru's government that the Soviets may use economic penetration as a powerful political lever. U.S. industrial leaders have pointed out that India desperately needs $1.5 billion in foreign capital to push through her second five-year development program, and have added a pointed comment. In a memorandum released last week, the World Bank mission tempered praise for the young nation's "new buoyancy and hope" with a warning to the Indian government against its "negative and grudging attitude'' to legitimate investors. Cautioned the bank, which has lent India more than $200 million: "At this stage of development, India certainly needs the contribution which can be made by foreign technology, private capital and management."
