The Secretary of State to the Embassy in India
1599. Eyes only Amb. Dept believes it clearly understood between US Govt and GOI that GOI request of US was to meet gap between total essential food grain import requirements and imports which GOI was itself able to finance from current fon exchange reserves. If fon exchange position improves GOI wld wish and US Govt wld expect GOI buy grain to maximum quantity practicable.
Dept had such possibility in mind in proposing that supply of food grain be considered in two stages. As you will recall, Cong being asked to provide funds immed for one million tons on grant basis, quantity and terms for remainder to be subj further review in light changing conditions.
Dept assumes Embtel 2617 Mar 30 sent prior receipt Deptel 1560 Mar 28.1
Dept desires you keep it currently apprised developments.