Eisenhower Library, Eisenhower papers, Whitman file
Memorandum by the Acting Secretary of State to the President
- Your Conversation With Prime Minister Mohammed Ali of Pakistan.1
When Mohammed Ali sees you he already will have had conversations with top State, Defense and FOA officials2 regarding economic and mutual security assistance programs. He already will have received as complete explanations as we can presently give him. He may, however, refer to those programs. We have promised the Pakistanis about $30,000,000 in military assistance for fiscal year 1955 to strengthen Pakistan’s existing forces. Eventually we hope Pakistan will be enabled to play an important role in Middle East area defense. We cannot say more now since our own plans are still in process of formulation.
Pakistan is facing an acute economic crisis subsequent to a sharp drop in foreign exchange earnings from its two principal exports, cotton and jute. Severe shortages of consumer goods, and of industrial raw materials and spare parts for Pakistan’s infant industries have resulted. A special FOA mission led by Mr. H. J. Heinz went to Pakistan in August and in its report recommended emergency aid for Pakistan. At a meeting in my office on Thursday the Pakistanis were informed of our decision to make available to them about $75,000,000 in special commodity assistance, part of which will be in the form of loans, a sum in addition to $25,000,000 they will receive in technical [Page 1868] and developmental economic aid. We recently also took steps to provide Pakistan with $5,000,000 of emergency flood relief. Mohammed Ali will meet with Governor Stassen Monday morning at which time questions regarding our economic aid program might more properly be raised.
Within Pakistan there have been signs recently of possible shifts in political power. Mohammed Ali probably faces a considerable political task on his return to Pakistan in conciliating the rebellious members of his own party, the Muslim League, and in maintaining his political strength. Since he has taken a consistently friendly and cooperative line towards this country, we hope he will succeed. You might express to him our admiration for the leadership he has shown.
The Prime Minister will be accompanied by Ambassador Amjad Ali of Pakistan, Assistant Secretary Byroade and Ambassador Horace Hildreth.