891.03/5–2451: Telegram
The Chargé in India (Steere) to the Secretary of State
priority
3345. Bajpai was informed last night (1900) immed on receipt Deptel 1971, May 22, that Emb had received instrs ascertain urgently [Page 2164] PriMin’s attitude toward econ aid. He asked me call this morning which I did so at 9:30.
I explained that consideration econ aid program had been delayed by slow progress foodgrain aid bill, and had now become matter great urgency for Dept, which was reluctant, in light difficulties with grain bill, make recommendations without advance assurance PriMin’s attitude toward need for and terms of aid.
Bajpai immed said that difficulties had not been fault of India. As for need of aid, he had always said to Amb that India needed and wanted US aid, but “without strings”. I replied that established fon aid procedure in US was “ECA procedure”, which we did not regard as involving “strings”. Dept wished to know whether PriMin wld be willing accept aid on ECA terms and conditions contained in agreements with SEA countries. We wished be sure that PriMin understood these terms and conditions, as well as some of principal motivating considerations behind US policy in making econ aid available to fon countries, as well as our reasons for favoring grants rather than loans in many cases.
Bajpai read me PriMin’s (loaded) schedule for day and said he doubted although he appreciated urgency, that Nehru cld be reached today. Wld I give him list of points on which answers needed, together with supporting observations. I agreed submit summary of ECA terms and conditions, but said I preferred oral to written explanations on such matters. Bajpai agreed arrange earliest possible appointment with PriMin.
Summary of points was supplied Bajpai before noon. He advised this afternoon that appointment likely be tomorrow rather than today. He understands answer desired tomorrow.