265. Telegram From the Embassy in India to the Department of State1
623. Based [less than 1 line of source text not declassified] report which indicates there good possibility GOI preparing purchase additional eight Soviet helicopters plus 8 transport planes, suggest Embassy be authorized to approach GOI with firm offer to supply in package deal helicopters, aircraft and road building equipment for use by the Border Road Development Committee for Indian border building program. Type helicopters, aircraft and road building equipment to be provided under proposal should be selected on basis GOI’s expressed preference.
Since Border Road Development Committee under civil component GOI, financing for proposal could be covered by DLF, or EXIM loan and would not be considered military assistance which GOI still [Page 553] opposed to committing selves on. Price of equipment offered should be geared to surplus value and sufficiently attractive off-set Soviet rock bottom prices and fact that Soviets’ offer on rupee payment basis.
Object package deal primarily geared prevent Soviet penetration Indian aviation market and more so Indian military. Though road building program under civil control, aviation equipment to be manned by military personnel and would clearly be part military capacity. Consider following type aircraft and helicopters would meet Indian needs, requirements. Numbers to be determined when discussions held with GOI. Aircraft: C–130, 124 or KC 97 Gs. Helicopters: Boeing Vertol, Kaman, Sikorsky 62 with bigger engine or Bell 204. Price factor and delivery date extremely important in light urgency which Indians attach to this program. Indication of quotable prices desired. Consider urgency of matter dictates that we make concrete offer shortly if we are to prevent Soviets from entering this critical Indian field.
Instructions requested soonest.2
- Source: Department of State, Central Files, 791.5622/9–1760. Secret.↩
- The
Department responded to this cable in telegram 902 to New Delhi,
October 5, which reads in part as follows:
“Exhaustive exploration suggestion contained Embtel 623 has revealed no basis on which civilian package deal as proposed therein can be authorized. Requests for assistance in financing individual items would presumably be given careful consideration by US loan agencies. Such requests however would have to come from GOI and accordingly would involve an evaluation by GOI of priorities compared with other GOI requirements for loan assistance. Likewise Department sees no possibility of USG purchasing for dollars any Indian rupees which U.S. firms might accept in payment for their equipment.
“Department concerned that even if entering sales competition of this sort were possible, Indians might well be tempted utilize Soviet offers of other military items at propaganda prices to bring pressure on USG to sell comparable items below cost—a process which might lead to expenditures by USG of unpredictable magnitude.” (Ibid., 791.5622/8–1260)
↩