Truman Libary, Truman papers, PSF–Subject file
The President to the
Ambassador in India (Bowles)
secret
[Washington,] July 1,
1952.
Dear Chester: I am enclosing you [a] copy of a memorandum from the Bureau of
the Budget regarding the suggestion which you made on India.
I have directed a reassessment of the Indian Program and the whole
National Security Program for future use. The attitude of the
Congress in these matters has been anything but cooperative. They
have had a wave of hysteria which has caused them to almost strip
foreign aid and also the Defense Program.
I don’t know how we will come out of it until I have had a chance to
analyze just exactly what they have done. My sympathies however are
with this proposal and we will keep working at it as long as I am
here.
Sincerely yours,
[Enclosure]
Memorandum by the Director of the Bureau of
the Budget (Lawton) to the President
secret
Washington, June 30,
1952.
Subject:
- Bowles Program of
Additional Aid for India
By memorandum of June 18, 1952, you requested suggestions on the
memorandum submitted by Messrs. Acheson and Harriman concerning Ambassador Bowles’ request for additional
funds for economic assistance to India during fiscal year 1953.
The memorandum from Messrs. Acheson and Harriman urged that the proposed increase of
$125 million for the Indian program not be submitted during the
present session of Congress and argued against a supplemental
request during the next session although without ruling out the
possibility.1
I am in general agreement with the position taken in the
memorandum. Only a small part of the money made available in
fiscal year 1952 has been expended and there are indications
that similar delays may be encountered in fiscal year 1953. In
addition, further study needs to be made of alternate methods of
financing the local costs of the program.
For these reasons and because of the basic issues concerning aid
to underdeveloped areas raised by the proposed supplemental
program
[Page 1654]
for India,
it may be desirable to reassess the India program at some future
date in the context of the review of the national security
programs being undertaken at your direction.
