Foreign Relations of the United States, 1952–1954, Africa and South Asia, Volume XI, Part 2

791.5 MSP/8–2053

Memorandum by the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Byroade) to the Acting Secretary of State and the Deputy Under Secretary of State (Matthews)¹

top secret

[Washington,] August 20, 1953.

Subject:

• Background Relating to Aid to India

Ambassador Allen has questioned the basis of US aid to India (Embtel 318) (Tab A)² and by implication has concluded that the US should receive a clear-cut request for our assistance. I have had the record examined (attached Tab B)³ and the following information appears relevant:

1. On May 25, 1951 Prime Minister Nehru informed our Chargé that India needed US aid and that he was most anxious to have it.

2. On December 19, 1951 Ambassador Sen, in the course of presenting his credentials to the President, stated that India needed assistance for the success of the Five Year Plan and expressed the hope that India might have the cooperation of the US.

3. Each of the early Point IV project agreements signed under the General Agreement on December 28, 1950⁴ referred to the request of the Government of India for the specified assistance. The subsequent project agreements under the Indo-American Technical Cooperation Agreement of January 5, 1952⁵ did not continue this language, but this later agreement was supplemental to and a continuation of the earlier one; the whole climate of negotiations was one of need and desire on the part of India for US aid.

4. From time to time India’s desire for US economic aid has been expressed by such high officials as Sir Rama Rau, Governor of the Reserve Bank of India, and Sir Girja Bajpai, Secretary General for External Affairs.

It is worth noting also that high Indian officials have on several occasions publicly expressed gratification over our assistance. The President of India, Rajendra Prasad, said in Parliament on February 6, 1952: “I welcome the agreement with the US for aid amounting to $50 million for development projects. I should like to express my special gratification for these projects which are particularly meant to encourage food production and the development of community schemes …”

While a formal request for US economic and technical aid in the form of a diplomatic note has not been made, the above record would seem to substantiate that India desires and in reality has asked for such aid.

I am informed that no TCA country requested aid by formal diplomatic note, and there was no request for such note.

Recommendation:

That you sign the attached telegram to Ambassador Allen giving the above background. (Tab C)⁶

1. This memorandum was drafted by Kennedy of SOA.
2. Dated Aug. 14, p. 1710.
3. Tab B, a “Paper on US Economic Aid to India”, is not printed.
4. For the text, see TIAS No. 2185, printed in 2 UST 425.
5. See the editorial note, p. 1633.

6. The draft telegram at Tab C was transmitted to New Delhi as Department telegram 212, Aug. 21, 1953, infra.

   Before this memorandum was submitted to Under Secretary Smith, Jeffrey C. Kitchen, the Deputy Director of the Executive Secretariat, appended a note for Under Secretary Smith which explained that the purpose of this telegram was “to gently get Ambassador Allen back on the track with regard to the question of U.S. aid to India. Although NEA agrees that the examples cited of Indian requests for U.S. aid are all oral or informal, it nevertheless believes that this is no time to rock the boat regarding our Indian Aid Program by asking for a formal request.”