Attached is a brief recap of the current status of our Indian projects. Note
particularly that we still confront the problem of getting Congress to lift
the ceiling on total aid to India.
Meanwhile, the second round of Kashmir talks begins 16 January in Delhi. The
first round went off without undue bickering (indeed with glimmerings of
hope) but each successive round will be more difficult. Each side is trying
to get the other to make the first move. We may have to step in as honest
brokers before too long, lest the talks break down in a contest of
silence.
Attachment3
Washington,
January 7,
1963.
MEMORANDUM FOR THE EXECUTIVE COMMITTEE OF THE NATIONAL
SECURITY COUNCIL
SUBJECT
- Status Report of NSC Subcommittee
on Military Aid to India and Kashmir
The NSC Subcommittee on South Asia has
the following report on the status of U.S. military assistance to India
and the Kashmir question:
[Page 469]
1. Joint U.S.-U.K. Air Defense
Team
We are moving ahead as rapidly as possible on sending, with the British,
a team to India to determine air defense requirements. The JCS has approved terms of reference and our
component of the team will be prepared to depart from the U.S. on
January 15 to join its British counterpart in London. The British have
handed us their version of the terms of reference for this joint team
which seem generally in line with our thinking.
2. U.S. Defense Production
Team
The Department of Defense is organizing a team, with Mr.
Carroll Staley of the Army Materiel Command as
head, to study how defense production facilities can be developed in
India and what foreign assistance is necessary for their development. A
similar British team is now in India. While its terms of reference are
narrow—limited to ordinance and existing facilities—ours will be broad
enough to cover such industries as communications and textiles and to
include new facilities. We estimate that our team will leave the U.S. on
about January 17.
3. Assistance from old Commonwealth
and Western European Nations
The U.K. has informed the old Commonwealth countries of the Nassau
decisions on military aid to India and is requesting their cooperation
in providing aid within the agreed planning basis. We have no indication
of their response or of their willingness to increase their
contributions.
We are instructing our Embassy in London to request the British to
increase pressures on their old Commonwealth partners.
We are also trying to bring the Governments of France, Germany and Italy
more actively into the business of providing military aid to India. The
British and ourselves are passing on to those governments the agreed
U.S.-U.K. planning basis for such aid and seeking their cooperation in
working within the planning basis. We also plan to brief the same
Western European governments more fully on our views regarding the
Sino-Indian conflict and, as they indicate their willingness to provide
military assistance, bring them more fully into our coordination
machinery.
4. U.S. Shipments to Date
Military aid to India to date approximates $22 million, and may be
roughly divided into three categories: equipment sent by initial airlift
($7 million including transportation costs), that sent by sealift ($12.4
million) and other ($2.6 million). The material sent by initial airlift,
comprising urgently needed Army ground equipment, was shipped between
November 3rd and 14th. The sealift equipment, comprising the bulk of the
aid, also consists of infantry equipment and ammunition. Of the three
vessels transporting it, the first arrived in India on January 4th, and
the remaining two are scheduled to arrive on the 13th. The “other”
category includes: two Caribou (transport) aircraft now en route to
India;
[Page 470]
C-119 (transport)
aircraft spare parts (the majority as yet undelivered); 50,000 pairs of
snow goggles (being transported via Air India International); 25,000
sets of winter clothing (10,000 via air, arrived January 3, 1963;
balance by sea); and other miscellaneous administration and training
type support. Another form of assistance, not included above since the
operating costs to MAP are as yet
unresolved, is airlift support, i.e., the twelve C-130s currently in
India.
5. Congressional Ceiling on Aid to
India
If we meet our commitment of $60 million to provide aid under the agreed
planning basis, we will have a leeway of about $15 million under the
informal ceiling on aid to India as agreed with Senator Humphrey at the
time of the Senate-House Conference on the foreign aid authorization
bill. Likely air defense commitments and a continued increase in PL-480
aid will push us over the top. We are, therefore, initiating
consultations with the Congressional leaders regarding the ceiling.
6. Policy Studies and
Intelligence
We are looking into the need for policy studies on a variety of subjects
such as the U.S.-U.K. relationship regarding military aid to India, our
approach to long run military aid, long run Indian requirements for
economic assistance, and the implications of the Pakistan-Chinese
Communist relationship.
We are also taking steps to improve our intelligence regarding Communist
China as it relates to the Sino-Indian conflict.
7. Kashmir Negotiations
We believe the opening round of the India-Pakistan talks on Kashmir went
as well as could have been expected. We believe for the present we
should continue to concentrate on building an atmosphere in which
progress can be made, leaving the substance of the negotiations to the
two parties. We have instructed our Embassies in New Delhi and Karachi
to take certain steps along these lines.
At the same time we are urgently studying other ways by which the U.S.
and U.K. can encourage forward movement, including offering good offices
when and if they are required.
We are particularly concerned over the effect on the talks of increased
Pakistani flirtation with the Chinese Communists, and have instructed
Ambassador McConaughy to speak
firmly to Ayub on this.
