5- states that the wealthy, who are mainly involved in private enterprise, should give money by way of tax reforms and reinvestment and land for agrarian reforms. While reform is undoubtedly needed, the attempt to couple it as a condition precedent to receiving capital for economic development is self-defeating, for it sets up a resistance in the receiving country that delays getting the program under way. These nations do not welcome having their social policies dictated by an outsider, even if he has a check in his hand. Finally, I would suggest to you that there is grave danger to the private enterprise system in our foreign aid program as it is presently being carried out. Despite the lip service paid to the role that private enterprise is to play, foreign aid is actually being negotiated and worked out by people who favor programs based on government action. Much of the emphasis has been on aid under terms and conditions that in many cases almost force the receiving country into a socialistic pattern, under which its government becomes the primary planning and development agency, with private enterprise being relegated to a secondary role. In my opinion, neither our government nor private enterprise can get the job done without help from each other. However, I would hope that our government would confine its efforts to giving aid directly only to those programs to which private capital cannot be attracted and that it would set up an atmosphere that would encourage private enterprise to go abroad boldly and confidently to win the underdeveloped countries to our way of life. Whether you are engaged in foreign commerce or not, each of you has a very substantial stake in seeing our system of private enterprise spread effectively throughout the world. Whether your role is to be active or passive, it would