192. Telegram From the Embassy in Pakistan to the Department of State1

1384. Joint Embassy–USOM message. Suggest reconsideration of expenditures US aid funds worldwide procurement, even though some concern expressed that if dollar trade is increased because of United States support funds either business might suffer decline when support withdrawn or might tend generate pressures to prolong United States support. While advantages policy apparent many areas, improved economic position industry free world nations makes this policy less important than formerly. Position United States trade Pakistan has been hampered by dollar shortages which have prevented normal acquaintance United States products. Thus continued world procurement policy will tend perpetuate abnormally low level United States trade. It will also inhibit investment United States capital, encouraging greater purchases United States products could [Page 428] tend to establish markets and consumer demand such products and make investment private capital bigger and more attractive.

  1. Source: Department of State, Central Files, 790d.5–MSP/4–155. Confidential.