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

Aidto 747. Joint State-AID message. Subject—PL 480 and Fertilizer Loan. President has just announced further extension PL 480 Title I program of 1,500,000 tons wheat for early shipment, that being equal to present monthly allocation on three months basis. President also announced $50 million loan for urgent import fertilizer tied to GOI [Page 499] expenditure like sum of own funds for fertilizer import.2 President believes all nations capable of helping should assist meet India’s present grave food problem and indicated USG would participate fully. Full text Presidential announcement following.

Inform Sen. Morse and other Senators and Congressmen in India of substance of Presidential announcement.

FYI. Pleased GOI announcement own plans import $79 million fertilizer. Every effort should be made assure AID loan entirely supplemental to maximum effort by GOI to import fertilizer with other than AID funds. Loan will also be tied in to overall agricultural program. By exchange of letters or otherwise, GOI will be expected agree to certain specific self-help efforts, particularly in private sector production and distribution fertilizer and other inputs. Detailed negotiating instructions follow. FYI.

Rusk
  1. Source: National Archives and Records Administration, RG 59, Central Files 1964–66, AID (US) 15–8 INDIA. Confidential; Flash. Drafted by Deputy Assistant AID Administrator Walter G. Farr, Jr., cleared by Handley, and approved by William S. Gaud.
  2. Bill Moyers, the President’s Press Secretary, made these announcements on President Johnson’s behalf in Austin, Texas on December 9. (American Foreign Policy: Current Documents, 1965, p. 754.) An amendment to the existing Title I P.L. 480 agreement with India, providing for an additional 1.5 million tons of foodgrains, was signed in New Delhi on December 10. (Circular telegram 1133, December 11; National Archives and Records Administration, RG 59, Central Files 1964–66, AID (US) 15–8 INDIA)