Foreign Relations of the United States, 1949, The Near East, South Asia, and Africa, Volume VI

890H.51/9–1949: Telegram

The Ambassador in Afghanistan (Dreyfus) to the Secretary of State

priority
confidential

Kabul, September 19, 1949—2 p. m.

217. Recent talks with Majid¹ Minister of National Economy confirms Embassy belief that loan urgently needed and economically sound. US goodwill being jeopardized by what appears to Afghans as unreasonable delay in considering loan. Present widespread criticism of MK² and American efficiency voiced by Majid seriously undermining US prestige. For approximately $20,000,000 spent only tangible returns Afghanistan has are one short road, one diversion dam and one incomplete canal.

Justly or unjustly MK cannot avoid being scapegoat for Afghan critical economic situation. Abandoned MK camps will stand as monuments of American inefficiency. Arghandab and Kajkai dams would be monuments American ability. Only loan making possible continued MK employment and completion Helmand project can avoid reduced US prestige and cooling of present cordial Afghan-US relations.

Dreyfus

1. Abdul Majid Khan.
2. Morrison–Knudsen, Afghanistan, an American construction firm working on contract to the Government of Afghanistan.