THE CEYLON = JOURNAL OF HISTORICAL , AND. f°. “SOCIAL STUDIES Vol. 5 1962 Nos, 1 & 2 SPECIAL ISSUE ON ASIAN ECONOMIC CO-OPERATION FART ONE; WORKING PAPERS na HLA. pb 5..GUNASEKERA. Zhe nced for ecoriamic co-operation amt st Asian countries. < M, ALnons FE Ceylon and region \perationss nspaih con consideration of some ‘of the project possi z tsa implications, Rauew Proms The cultural matrix of divelopment, Add. WILSON The: ophticak iBspoets of regionalism : MP. Perizns Economic co-operation in Ast. t ‘area and machinery in the background sof dl ae in economic co-operation in Western Europe aiid: Mii" merica. P. Wicanara, Some aspécts of @ieconomics oP MAE regions co-operation. PART TWO; PROCEEDINGS OF A SEMINAR ON AgiAN ECONOMIC CO-OPERATION 4 " SeswoN 1: The rationale of Asian econdmie co-operation ; Stsston IL: , Ceylan’s need for regional co-operation. Session IIL: Political and Socia! aspects of regional co-operation. a Session TV: Scope, area and rmgchinery of co-operstion, Dmctssants: Gimani-Corca (Cholrman) Hector Abbayayarghon; M. Aldoréy 1.-Acide 5: Guhasckera; Mrs.’ Theja Gungwardena; C.R. Hensnia; T. Jeevaratnam: - W.L. Jeyasingham;8. Mahendra; MiB. Perera; Ralph PerisiM. Rajansyoga: M.R.P. Salgado; Ediriweera Sarathchandiay Aid. Wilson. PART THREE: CONCLUDING STATEMENT GN CEYLON AND [Ae- ios ASIAN a cey A AE: ©) Awnual Subscription Rs 600." ® SLIPR Prbied titee ayear by The Ceffon- Historical and Social Suidies Publications Board, 2 ‘ . mf : 4THE CEYLON JOURNAL OF HISTORICAL AND SOCIAL STUDIES EDITORIAL ADVISORS LE. JAYASURIYA, M.A. (Lond,), a.8.28.., Professor of Education, K. KULARATNAM, M.A., Ph.b. (Lond,), Docteur De L’Universite (Sciences) (Paris), pip. Gemmology, a.c.a. (Lond.), Dip. Geog. (Madras), Professor of Geography, W.J.F. LABROOY, ».a. (Lond,), Acting Head of the Department of History, T. NADARAJA, M.A. (Cantab.), Barrister at Law, Professor of Law, S. PARANAVITANA, c.B.£., Ph.D. (Leiden), Hon. p.ritt. (Ceylon), Research Professor of Archacology, EDITORS R. PIERIS, 8.4. (Ceylon), B.sc., Ph.D. (Lond.), Professor of Sociology, S. ARASARATNAM, B.A. (Ceylon), Php. (Lond.), formerly Lecturer in History, MANAGING EDITOR H.A.L. GOONETILEKE, B.A., Dip. Lib. (Lond.), pip. Lib. (Madras), A.L.A., The Library, UNIVERSITY OF CEYLON PERADENIYA. The Ceylon Journal of Historical and Social Studies is published twice a year by The Ceylon Historical and Social Studies Publications Board. The months of pub- lication are normally June and December, and copies will be sent post-free to subscribers. The Journal is intended to cover the entire range of the social sciences—economics, political science, law, archaeology, history, geography, sociology, social psychology and anthropology. The articles will relate mainly, but not exclusively, to Ceylon. Articles, books for review, and editorial and business communications should be addressed to H.A.I. Goonetileke, Upper Hantane, University Park, Peradeniya, Ceylon. Past issues are available at publication prices (Vol. 1, No. 1 is out of print). Remittances should be made payable, ta, The Ceylon Journal of Historical and Social Studies. Rates of subscription (inclusive of postage): Annual—Rupees six; ‘Twelve shillings six pence; U.S. Two dollars. Single copies—Rupees Three; Six shillings three pence; U.S. One dollar. A trade discount of 20%, is allowed to booksellers in ‘Ceylon. All payments from foreign countries must be made by International money order, cheques payable in Ceylon currency, or with 1 sh., 6d. of § 0.25 centsadded for collection charges.THE CEYLON JOURNAL OF HISTORICAL AND SOCIAL STUDIES Vol. 5 1962 Nos. 1 & 2 Editors RALPH PIERIS S. ARASARATNAM Managing Editor H, A. L GOONETILEKE Printed at The Colombo Apothecaries’ Co. Press for The Ceylon Historical and Social Studies Publications Board, uATHE CEYLON JOURNAL OF HISTORICAL AND SOCIAL STUDIES Vol. 5 “1962 Nos. 1 & 2 CONTENTS SPECIAL ISSUE ON ASIAN ECONOMIC CO-OPERATION Page EprroriaL Nore iii PART ONE: WORKING PAPERS HLA. pe S. Gunasexera The need for economic co-operation amongst Asian countries 1 M.E. ALDons Ceylon and regional co-operation in Asia: a con- sideration of some of the project possibilities and their implications 10 Raceit Pieris The cultural matrix of development 18 AJ. Wusow The political prospects of regionalism in Asia 29 M.P. PERERA Economic co-operation in Asia: its scope, area and machinery in the background of developments in economic co-operation in Western Europe and Latin America 35 P, WIGNARAIA Some aspects of the economics of Asian regio- nalco-operation 54 PART TWO: PROCEEDINGS OF A SEMINAR ON ASIAN ECONOMIC CO-OPERATION Session I: The rationale of Asian economic co-operation 67 Stssion II: Ceylon’s need for regional co-operation 1 Session III: Political and social aspects of regional co-operation 120 Session IV: Scope, area and machinery of co-operation 149Discussants: Gamani Corea (Chairman); Hector Abhayavardhana; M.B. Aldons; H.A. de S. Gunasekera; Mrs. Theja Gunawardena; CR. Hensman; T. Jeevaratnam; W.L. Jeyasingham; S, Mahendra; M.P. Perera; Ralph Pieris; M. Rajanayagam; M.R.P. Salgado; Ediriweera Sarathchandra; A.J. Wilson. PART THREE: CONCLUDING STATEMENT ON CEYLON AND ASIAN ECONOMIC CO-OPERATION 185, THE CEYLON JOURNAL OF HISTORICAL AND SOCIAL STUDIES, QUINQUENNIAL INDEX, VOLS. 1-5 (1958-1962) 201 AUTHORS OF WORKING PAPERS HLA. pe S. GUNASEKERA, B.A. (Cey.), m.sc. (Econ.), Ph.p. (Lond.), Lecturer in Economics, University of Ceylon. M.E. ALDONS, B.a. (Cey.), Research Officer, Department of National Planning, Colombo. RALPH PIERIS, b.s. (Cey.), n.sc. (Econ.), ph.p. (Lond.), Professor of Sociology, University of Ceylon. A.J. WILSON, B.A. (Cey.), Ph.v. (Lond,), Lecturer in Political Science, University of Ceylon. M.P. PERERA, B.A. (Lond,), Research Department, Central Bank, Ceylon. P. WIGNARAJA, 3.4. (Cey.), rh.v. (Yale), Research Department, Central Bank, Ceylon.EDITORIAL NOTE This issue of the journal is devoted to the subject of Asian Economic Co-operation, which was discussed at a non-official Seminar organised by a group consisting primarily of economists from the University of Ceylon, the Central Bank, and the Planning Department. The seminar, held iti Nuwara Eliya during the Vesak week-end this year (18-20 May 1962) consisted of five sessions, the last of which was devoted to drafting the Statement which comprises Part Three of this issue. The working papers formed the basis of the discussion at each session. They have been revised by the authors for the present publication. The seminar proceedings were tape-recorded. Part Two, which contains an edited version of the discussions, is not a verbatim record of the proceedings. In editing the transcript for publication, irrelevant and repetitious statements were excluded, and remarks on the same subject made by a discussant at different places were sometimes joined. Certain obscure statements were clarified, and colloquialisms re-worded, in consul- tation with the discussants, No new matter has been introduced. This minimal editing leaves the bulk of the discussion in its original form. The Ceylon Historical and Social Studies Publications Board has been reluctantly compelled to issue the present double number in order to bring the Journal up to date. A quinquennial index of the contents of Volumes 1 to 5 (1958-1962) is included in this special issue. The Board is now in a position to bring out the Journal regularly, twice a year, normally in June and December. The first number of Volume 6 will be published early in 1963. Subscribers are advised to renew their subscriptions. RALPH Pirris, Editor.SEMINAR ON ASIAN ECONOMIC CO-OPERATION PART ONE; WORKING PAPERSTHE NEED FOR ECONOMIC CO-OPERATION AMONGST ASIAN COUNTRIES HLA. DE S, GUNASEKERA Western European Economic Union is fast becoming a reality. The impending entry of the United Kingdom and the probable entry of the other countries of the European Free Trade Association into the European Common Market will soon create an economic unit embracing the whole of non-communist Europe. The formation of regional economic blocs, however, is not entirely a European phenomenon. Partly as defensive reaction against European integration and partly as a result of the realisa- tion of its obvious economic benefits, the countries of Latin America have formed themselves into the Latin American Common Market. More recently, the so-called Casablanca group of countries has started exploratory talks with a view to the formation of a Common Market. More recently still, the governments of certain African countries held discussions on the question of Economic Co-operation. There was the recent conference in New Delhi at which businessmen from a number of Afro-Asian countries accepted the necessity for such co-operation. The Parliament of Ceylon has accepted a private member’s motion urging economic co-operation amongst certain Asian countries. The proximate cause of this quickening of interest in regional co- operation amongst backward underdeveloped countries has been the proposed entry of the United Kingdom into the European Common Market. While the economic development of the underdeveloped areas confronts the European countries with a threat to their traditional markets, the formation of the ECM in its turn threatens the export markets of the Asian countries. It has been estimated that in 1959, 47.4 per cent of India’s exports of manufactured goods went to the ‘industrial areas’ (Western Europe and North America). The figure for Hong Kong was 60.6 per cent.’ Similarly, 40.4 per cent of Ceylon’s exports went to the ECM area. 1. United Nations: Economic Bulletin for Asia and the Far East; Dec. 1961, p. 62, 7i1—B