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

3170. FYI Only. In conversation with Black, President World Bank, on Bank’s proposal for settlement of Indus Waters question, Acting Secretary said he was highly gratified with the results achieved and congratulated Black on the outcome.2 He added that he understood the reason for suggesting that such a large part of the aid be in grant form and was in favor US putting up aid in form and amounts proposed. Black explained the need for having assurances from friendly governments re financing for London meeting scheduled early August. The Acting Secretary said he was prepared to try and work out assurances of a “best efforts” kind.

An aide-mémoire for GOP would be prepared covering this and would be discussed with Bank officials in draft form.

Dillon
  1. Source: Department of State, Central Files, 690D.91322/6–1359. Secret; Limit Distribution. Drafted by Kennedy and approved by Dillon. Also sent to Karachi.
  2. Rountree briefed Dillon for his meeting with Black in a memorandum of June 4.(Ibid., 398.14/6–459)