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B. [[underline]] Korean Industry Today [[/underline]]

There are grounds for believing that Korean industry is on the brink of a "take-off" which will lead the country to a healthy and rapid rate of economic growth. This was the conclusion stated by W. W. Rostow, Chairman of the State Department's Policy Planning Council, in his speech at Seoul National University on May 3, in which he ably summarizes the factors justifying the optimistic view. In fact, exports of non-traditional products have already been rising sharply in recent years, from around $20 million in 1959 to $119 million in 1964, showing the fruits of substantial U.S. assistance in improving roads, harbors, electric power, and other components of the infrastructure of the economy, together with the benefits resulting from courageous self-help measures in raising government revenues and in curbing inflation. Liberal legislation to attract private foreign capital has been adopted. The prospect for rapid capital formation is further enhanced by the recent signing of the normalization agreement with Japan, which among other benefits will, when in effect, afford