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

2481. Following reply Secretary Allen’s letter April 20,2 requesting Pakistan country program for FY 1958, sets forth Ambassador’s position based on thorough review with all members country team.

I. Program recommendations for Pakistan

[Here follow Ambassador Hildreth’s specific recommendations for United States assistance programs to Pakistan for fiscal year 1958. He called for $159 million in MDAP and DFS support, $95 million in defense support, and $13.5 million in technical cooperation as the major components of the proposed assistance program.]

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II. General considerations

Course program development Pakistan has out-run formulation policy NSC 5409, February 1954.3 OCB outline plan of operations May 19554 more nearly adequate but even this requires modification.

Combined program totals far greater than can be justified by language NSC paper. Dimensions military aid program, now estimated cost over $400 million, exclusive funds for local implementing projects, cannot be covered by formula “provide limited military aid” paragraph 28. Elements of present program fixed by written commitment undertaken by USG aide-mémoire October 1954, and figure cited necessary carry out commitment including ultimate delivery light bomber squadron. Economic aid program equally difficult justify under formula paragraphs 20, 22 NSC 5409. Here purpose stated as assistance in development natural resources and basic industrial potential, “including provision technical assistance and limited economic aid” and extension emergency aid in exceptional cases. This formula hardly covers program defense support, technical assistance and surplus agricultural commodity sales substantially excess $100 million per year. Although not stated NSC or OCB paper, presumably expenditures these magnitudes based on assumption that ultimately they will produce strong stable country, economically viable, allied with west, able make and support continuing contribution free world defense.

As discussion several programs will indicate, there are real difficulties in way realization these objectives stemming from divergency US and Pakistan interests on some important points as well as inherent Pakistan limitations. These difficulties have been carefully considered and Embassy in no way disposed discount them. However, assuming objectives substantially as formulated foregoing paragraph, we consider recommended level of aid both necessary and justifiable.

[Here follow detailed comments on proposed specific military and economic programs.]

  1. Source: Department of State, Central Files, 790D.5–MSP/5–1956. Secret.
  2. Not found in Department of State files.
  3. NSC 5409, “United States Policy Toward South Asia,” approved by the President on March 6, 1954, is printed in Foreign Relations, 1952–1954, vol. XI, Part 2, p. 1089.
  4. See footnote 2, Document 195.