Foreign Relations of the United States, 1955–1957, East Asian Security; Cambodia; Laos, Volume XXI

45. Telegram From the Department of State to the Embassy in India¹

Washington, April 20, 1955—7:28 p.m.

1604. Joint State–FOA message. Dept has received messages from Embassies in number of Asian Colombo Plan countries asking for clarification of Indian invitation to Simla meeting May 9. According to our reports invitation reads about as follows:

“During Mr. Harold Stassen’s visit to New Delhi first week of March, he indicated United States Government would like to have views of Asian regional recipients of United States foreign economic aid for consideration in conjunction forthcoming United States Presidential presentation aid program to Congress. Mr. Stassen said he would like such countries to develop a suggested pattern for the use of United States aid. The Indian Government agrees with this suggestion and accordingly would appreciate being advised as to the willingness of the Government of blank to send a representative to a preliminary meeting on this subject May 9 at Simla.”²

This invitation, with emphasis on US aid, presents obvious problems for us in connection with aid presentation to Congress and has also caused concern in certain Asian countries—some of which do not receive US aid and some of which fear US aid will be subject to multilateral apportionment.

According to GOI minutes of Feb. 27, 1955 meeting between GovStassen and party and Finance Minister Deshmukh and other Indian officials, Governor Stassen suggested “there might be a meeting of officials well in advance of the next CPCC meeting to consider this matter further and to evolve an agreed plan and he thought that the Government of India might take the initiative in this regard. He was sure that the US Gov would welcome the idea and he felt that the UK would also be in agreement. The main consideration from their point of view was their desire to do what the Governments of the region would like to be done.

“The Finance Minister agreed that there should be a meeting of the officials. It should be made quite clear that what was contemplated was the setting up of a small Secretariat to provide continuity and also to be in close liaison with the Technical body. It was not the intention to use the CPCC as an allocating body for assistance to the region and the aid should continue on the bilateral basis as at present.”

This exchange summarizes our understanding of the purposes of Simla meeting. Other references in Stassen meetings in New Delhi can be found to support and elaborate our suggestion for Asian initiative to strengthen Colombo Plan organization and Indian understanding of how organization might develop. In particular Fin Min Deshmukh stated at Feb 27 meeting “In the case of the Asian countries, the allocation of development assistance among the countries in the region might prove to be somewhat awkward. Meanwhile the bilateral arrangement had been working harmoniously. He thought that the strengthening of the Technical Assistance Programme by setting up a Technical Corps of experts in the region, to advise on schemes and projects referred to them and also to assist those countries which needed assistance, in the formulation of integrated development programmes or individual projects and the setting up of a permanent Secretariat for the Colombo Plan Consultative Committee could be agreed upon. The relationship between the Secretariat and the Technical body could be reviewed from time to time as they developed.”³

We believe it would be highly desirable for you to approach Fin Min Deshmukh and explain to him the unfortunate reactions which have resulted from couching invitation to Simla in terms of consultation on utilization of US aid as yet unapproved by Congress. Further, very real concern has been caused in various Asian countries that the Colombo organization will henceforth dispose of or allocate US aid. For the time being we are asking our Embassies in the Asian Colombo countries to seek or await clarification from India. We believe this preferable to indicating to Govs such countries that Indian invitation and stated purposes of Simla meeting are not in accord with our understanding.

You should emphasize that we appreciate initiative that Indians have taken and that we wish to do what we can to assure success of meeting. However we believe that accomplishment these objectives required clarification of Indian invitation with emphasis being placed on strengthening Colombo Plan organization along lines Deshmukh conversations with GovStassen. We believe that if Indians agree to put Simla meeting on basis Stassen discussions with them, reaction here and in Asia to such a meeting will be greatly improved.

Please report fully on developments thus far and results your conversation with Deshmukh.

For information addressees: assuming that clarification along above lines made by Indians, you should encourage government to which you are accredited to sent representative to Simla meeting.⁴

Dulles

1. Source: Department of State, Central Files, 890.00/4–2055. Confidential; Priority. Cleared extensively within the Department, initialed by Hoover and Stassen, and approved by Nolting. Repeated to Bangkok, Colombo, Djakarta, Kabul, Karachi, Manila, Phnom Penh, Rangoon, Saigon, Vientiane, and Tokyo.
2. The quoted material is a summary based on information received by the Thai Government. (Telegram 2603 from Bangkok, April 19; ibid., 890.00/4–1955) Text of the Indian note, received by the Thai Government on April 8, is an enclosure to despatch 497 from Bangkok, April 22. (Ibid., 890.00/4–2255)
3. Regarding Deshmukh’s meetings with Stassen, see footnote 2, Document 38.
4. In telegram 1607 from New Delhi, April 23, the Embassy noted that both it and TCM had discussed the substance of telegram 1604 with the Indian Government and that as a result that government was sending to those missions concerned a telegram containing such a clarification. In conclusion the Embassy stated that it and the TCM both recommended, in view of this clarification, the “good faith with which GOI has consistently attempted implement Stassen–Deshmukh discussions”, and the importance of not discouraging Asian initiative, that interested U.S. missions be instructed to encourage attendance at the Simla meeting. (Ibid., 890.00/4–2355)