Office of the Historian

891.00 TA/3–553

Memorandum by the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Byroade) and the Director of the Policy Planning Staff (Nitze) to the Secretary of State1

secret
[Washington,] March 5, 1953.

Subject:

  • The India and Pakistan Programs for Fiscal 1954.

In case you have not seen New Delhi’s telegram of March 2 in support of the $200 million program, it is attached for your reference (Tab A).2 We also support the importance of a program of this size in India and the related program of $49 million for Pakistan. Very briefly, considerations which seem persuasive are: the political necessity of the economic progress during the next three years which this and subsequent assistance would provide; the improved internal stability in India and Pakistan, which it is believed would result; the need in a broader sense of the friendly cooperation of India and Pakistan in trying for a settlement of the Korean question; the need to maintain the best possible relationship with India and Pakistan in connection with efforts to resolve Kashmir; and the support which large programs would give in connection with the formation of MEDO.

However, because of the budgetary situation and your desire to cooperate fully in making reductions, we have now modified our program requests to $140 million for India and $36 million for Pakistan. This was the first stage reduction on which evaluations were requested by DMS.

Your proposed letter to Mr. Stassen in support of the Department’s budget presentation has been modified accordingly and is attached (Tab B).3

  1. Kennedy of SOA and Arthur Z. Gardiner, Politico-Economic Adviser, NEA, drafted this memorandum.↩
  2. Not printed; the reference is to New Delhi telegram 3455, Mar. 2 (891.00 TA/3–253).↩
  3. This letter has not been found in the Department of State files.↩