170. Memorandum From the Chairman of the Council on Foreign Economic Policy (Randall) to the President’s Assistant (Adams)1
On May 3, 1957, I submitted an interdepartmental study with respect to the economic problem of India.2
Here are the long delayed recommendations, as submitted by State.3
These represent interagency consensus, with one exception: Treasury recoils at the very thought of special Congressional action to meet the problem of India.
Here is the problem as I see it:
- India’s present position in the world justifies a strong effort of support from the United States.
- Her economy will fall short under her second five-year plan by between $700 and $900 million over and above all assistance presently contemplated.
- We should go part way to make up that deficit but should leave enough unmet to keep heavy pressure on India.
- An addition of $40 million per year to the present $60 million level of annual assistance might be all that the new Development Fund could bear, and still meet other problems.
- We might offer that now to India, and next year consider objectively whether to ask Congress for a special additional appropriation.
- Source: Department of State, OCB Files: Lot 61 D 385, India. Confidential. Attachment to a memorandum from Staats to the OCB, dated July 22. Adams referred Randall’s letter on July 18 to Robert Cutler for NSC/OCB action. On July 24, the OCB directed that the question be referred to the OCB Working Group on South Asia, which would be expanded to include some of the members of the Interdepartmental Working Group on India and all interested agencies. Recommendations were called for in advance of the September visit of the Indian Finance Minister. The Working Group was “to consider, to the degree possible, the effect of Congressional and Executive Branch action prior to September on the recommendations contained in Mr. Dillon’s letter to Mr. Randall of July 15.” (Memorandum from Jeremiah J. O’Connors of the Operations Coordinator’s office to Rountree, July 24; ibid., Central Files, 891.00/7–2457)↩
- See footnote 3, Document 165.↩
- Supra .↩
- Printed from a copy which bears this typed signature.↩