Memorandum of Conversation, by the Director, Office of South Asian Affairs (Kennedy)



  • Dr. Harry Reed’s report on his mission to Pakistan to study the wheat problem.


  • The Acting Secretary, General Smith
  • Drs. Reed and Volk, members of Special Mission to Pakistan on wheat
  • Mr. JerneganNEA
  • Mr. KennedySOA

Dr. Reed summarized his findings, emphasizing in particular the urgency of aid and the importance of making possible the development of Pakistan’s economy through the use of counterpart funds which would arise out of the grant portion of the assistance.

The Acting Secretary pointed out the great difficulty which a request for a dollar appropriation would face at this time, to which Dr. Reed replied that questions of this kind were really out of his province; he believed the answer would have to be given by responsible officials in Washington. The Acting Secretary said that it would be very unfortunate to provide aid on a basis that would put the World Bank out of the business of making further loans to Pakistan for economic development; a dollar loan would do this. Mr. Black, President of the World Bank, had suggested to the President a loan of wheat repayable in kind and the President was very much taken with this idea. There was also the possibility of making a grant of wheat. This could be done [Page 1829] without a dollar appropriation at this time through Congressional authorization to the CCC to give wheat to Pakistan.

The Acting Secretary asked that the various alternatives be listed in order that a decision might be reached at Cabinet level on the question of how to extend aid. Mr. Jernegan said this would be done. The Acting Secretary also suggested that Drs. Reed and Volk see Secretary of Agriculture Benson before they left town and this was arranged for later in the morning.1

  1. Memorandum of conversation not printed.