17. Telegram From the Department of State to the Embassy in Pakistan0

1829. Eyes Only for Ambassador. Deptel 1819.1FYI: President’s decision in approving commitment of aid to Pakistan was taken in principle, with exact size and period covered to be determined prior to meeting Pakistan Consortium now scheduled early June. Current thinking is for commitment $250 million. Certainty this figure and its applicability to period of one year or more dependent upon detailed examination latest Pakistan submission to IBRD. In case of India President authorized commitment of up to $ 1 billion for two-year period to be indicated at Indian Consortium beginning April 25.

In both cases commitments would be subject considerations mentioned first para reftel and also to understanding (a) procurement policies governing US assistance along lines US assistance obligations would be made after careful examination specific project and program proposals both countries. contemplated President’s February 6 balance of payments message to Congress and (b)

President has despatched messages to Heads of Governments United Kingdom, Canada, Germany and Japan indicating US intention make very substantial commitment of aid to both India and Pakistan and expressing hope their governments able do likewise. No figures mentioned these messages.

Ambassador Aziz Ahmed has been informed by Assistant Secretary Talbot of fact US prepared make substantial commitment to Pakistan at Consortium meeting in June, subject above mentioned considerations. No amounts indicated.

It has now been decided there will be no public announcement of President’s action.

  1. Source: Department of State, Central Files, 790D.5-MSP/4-2561. Confidential; Priority. Drafted by Adams, cleared by Talbot and in substance with Dungan, and approved by Cottam.
  2. Telegram 1819 to Karachi, April 23, instructed Ambassador Rountree to inform President Ayub that President Kennedy had authorized substantial new aid commitments in support of Pakistan’s development program. The commitments were subject to necessary Congressional action, and would be proportionate to contributions by other members of the consortium. (Ibid., 790D.5-MSP/4-2361)