214. Editorial Note
Beginning on August 25, a 3-day meeting of the principal countries helping to finance India’s development program was held in Washington to discuss current Indian financial problems. The meeting, which was sponsored by the International Bank for Reconstruction and Development, was attended by the United States, the United Kingdom, the Federal Republic of Germany, Japan, and Canada. As a result of the meeting, the IBRD and the participating countries agreed to make approximately $350 million available to India to help fill its foreign exchange gap for the period up to March 31, 1959. “This amount coupled with reasonable drawdown GOI reserves,” the Department of State noted, “should see India through immediate critical period. B. K. Nehru has expressed to Department elation over results meeting which considered highly successful by all participants.” (Telegram 493 to New Delhi, August 28; Department of State, Central Files, 398.14/9–2858) The United States indicated at the meeting that it was prepared to provide up to $100 million in Development Loan Fund [Page 444] assistance, depending on agreements with the Indian Government on projects to be financed. The United States indicated that it was also prepared to extend P.L. 480 assistance in the initial amount of $200 million and to defer payments on India’s wheat loan with a resulting relief of $3.5 million for India during the current fiscal year.