345. Editorial Note
Between February 24 and March 13, Finance Minister Mohammed Shoaib was in Washington for a series of discussions with U.S. officials on Pakistan’s financial problems. Shoaib met with Herter, Henderson, Dillon, Rountree, Kennedy, and Bell at the Department of State. He also met with Leonard J. Saccio, Deputy Director of the ICA; Leland Barrows, Regional Director, Office of Near East and South Asia Operations, ICA; Dempster Mcintosh, Managing Director of the Development Loan Fund; and officials of the Department of Defense, the IBRD, and the IMF. The Department briefly summarized the Shoaib visit in telegram 2253 to Karachi, March 18, which reads in part as follows: [Page 704]
“In Department general theme of his presentation was centered around three foreign exchange gaps: 1) abnormal carryover of export commitments from previous regime amounting to 50 crores; 2) foreign exchange requirements for greater utilization for industrial capacity amounting to 40 crores for next two years and tapering off thereafter; 3) uncovered portion of 15 month development program amounting to 59 crores. Copies of supporting documents air pouched.
“All Washington officials listened sympathetically to Shoaib’s presentation but were unable give him any definite assurances at this time since DLF exhausted and no slack remains in Mutual Security funds. Department indicated however it would sympathetically consider financing high tension grid and PICIC from DLF supplemental appropriation, if any.” (Department of State, Central Files, 033.90D11/3–1859)
Memoranda of many of these conversations are ibid., 033.90D11, 790D.13, 790D.5622, 890D.10, and 890D.131. Briefing papers for the Shoaib visit are ibid., 033.90D11 and 790D.13. A memorandum of Shoaib’s conversation with Herter on February 24, which concerned Pakistan’s relations with India, is printed as Document 62.