791.5 MSP/8–2153: Telegram
The Acting Secretary of State to the Embassy in India1
212. Limit distribution. Urtel 3182 raises certain questions re basis of US aid to India which led me have careful review this matter. A survey has been prepared which is being air pouched but the following points might be helpful for your immediate information:
- 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 cooperation of the US.
- 3.
- Each of the early Point IV project agreements signed under the General Agreement on December 28, 19503 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, 19524 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.
- 5.
- No formal request for aid received from any country under TCA program.
Would appreciate your comment as to whether above does not substantiate belief India has in fact requested aid. Might be unwise in light of passage of time and Indian sensibilities now to require formal written request. Advantages this further step not clear especially when contrasted likely antagonistic Indian reaction.
Assume you are proceeding urgently obtain necessary assurances (Deptel 184).5