Historical Documents - Office of the Historian

Washington, June 9, 1965.

After reviewing and discussing a memorandum from Messrs. Bell and Mann,2 the President:

1.: Agreed that AID could proceed with those loans already authorized and announced, plus certain loans which are close to completion (these loans are detailed in the attachment to the 9 June Bell/Mann Memorandum).
2.: Directed that there be no additional decisions, authorizations or announcements on loans to India or Pakistan without his approval, pending passage of the FY 1966 foreign aid appropriation.
3.: Disapproved advance program loans to India and Pakistan, even if as a result we had to ask Congress to reappropriate the money involved.
4.: Requested an early review of economic aid to India and Pakistan by State and AID, in the context of our global pattern of use of aid resources. It should cover such issues as: (a) whether the US should be spending such large sums in either country; and (b) how to achieve more leverage for our money, in terms both of more effective self-help and of our political purposes.
5.: Requested early recommendations on (a) a new PL 480 agreement with India; (b) what US pledge, if any, should be made at the Pakistan Consortium pledging session in late July.

McG. Bundy

Source: Johnson Library, National Security File, Country File, Pakistan, Vol. III, Memos, 12/64–7/65. Secret; Limit Distribution. Copies were sent to the Under Secretary of State, the Under Secretary of State for Economic Affairs, and the Director of the Bureau of the Budget.↩
Reference is to a memorandum from Bell to the President, dated June 9, dealing with AID loans to India and Pakistan. A copy is ibid., NSC History, Indian Famine, Aug 66–Feb 67, Vol I.↩

Foreign Relations of the United States, 1964–1968, Volume XXV, South Asia