790D.00/8–1151

The Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (McGhee) to the Minister of Finance and Economic Affairs of Pakistan (Ghulam Mohammad)

confidential

My Dear Ghulam: I have thought of you many times in the last “few months, but I have been under such pressure that I have unfortunately postponed writing to you. Since passing along your letter of May 17 to the Ford Foundation, its Chairman, Mr. Hoffman,1 recently called at the Department to inform Secretary Acheson of his particular interest in formulating a development program for the Near East and South Asia. He is now visting the area, as you know, and has advised us that he hopes the Foundation will be able to move quickly on several projects which would be in Pakistan’s interest. Though the funds of the Foundation are limited, he hopes its assistance can supplement the development undertaken by Pakistan both with its own resources and with the aid that may become available under the United States Mutual Security Program.

With reference to the Mutual Security Program, I have heard of Pakistan’s difficulties in replying to our approach regarding the usual ECA provisions for administering United States aid programs. I do hope, however, that any reluctance in this connection can be overcome. We have, as you know, extended aid to many countries on this basis, and I do not believe the record will show that any have suffered. I know of no nation that has really refused to accept aid on this basis. Burma, which, as you know, is a highly sensitive country, is quite happy with its ECA program, and India has indicated acceptance. I realize that you yourself, would not have any fears, and hope you will be able to so convince your government.

You are undoubtedly aware of the attention that is being given in this country to the Kem Amendment2 with respect to shipments to Communist countries, and the fact that we have requested an early reply to the question of whether Pakistan can certify, as required by the Amendment. The answer to this question, plus additional information on the impact of such certification upon the Pakistan economy, is necessary for consideration of the whole situation by our National Security Council. Although there have been proposals following upon the President’s message to the Congress, to supplant this legislation [Page 2219]with more workable provisions, the Department can only carry forward programs to assist other countries within the framework of the existing law, which is the Kem Amendment. An early reply to the Embassy on this matter would be most helpful.

I know that you, too, look forward to the solution of the Iranian oil problem and your personal support of Mr. Harriman’s mission to Iran3 is warmly appreciated. I know, of course, of your great respect for Mr. Harriman, which I can assure you is mutual. You may rest assured that we will continue to exercise our good offices in seeking a peaceful and equitable solution to the Iranian oil question, which will benefit, not only the two principal parties, but also all other free nations. Mr. Harriman is, as you know, remaining in Tehran during the current negotiations.

I recall our interesting discussions, in the past, and in Karachi last March concerning the development of the International Islamic Economic Organization. As you know, we look with favor upon such cooperative efforts and are happy to give such assistance as we can in supplying the Organization with the two experts you mentioned in your letter of March 28, 1951.4 I hope you will keep me informed of the Organization’s future plans.

Michael5 and I both greatly appreciated your excellent photographs. His is hanging in an honored place in his room. He extends his greetings to you. Mrs. McGhee and I want to thank you again for the splendid luncheon you tendered in our honor when we were in Karachi. It was one of the highlights of our entire trip. We both hope to see you before too long here in Washington. With every wish for your continued good health, I remain,

Sincerely yours,

George C. McGhee
  1. Paul Hoffman.
  2. The Kem Amendment, Section 1302 of P.L. 45, Third Supplemental Appropriation Act of 1951, approved June 2, 1951 (65 Stat. 52), so-named after Senator James P. Kem of Missouri, provided for a ban on economic assistance to countries exporting strategic materials to Communist bloc countries. Further documentation is scheduled for publication in volume i.
  3. W. Averell Harriman, Special Envoy of the President, was in Tehran in July and August in an effort to settle the Anglo-Iranian oil controversy; documentation on this question is scheduled for publication in volume v.
  4. Not printed.
  5. Michael A. McGhee, son of George C. McGhee.