329. Memorandum for the Record1

The President in a talk with Rusk and Rostow yesterday expressed these feelings about aid to India and Pakistan:

He recognizes it will be hard to get concrete progress on our two conditions—progress on Tashkent and defense ceilings—immediately. So he is willing to move ahead cautiously. We can maintain [Page 632] control by meting out our aid in two tranches and making it clear the second tranche—but not the first—will depend on concrete progress by late in the year on these two fronts. In Pakistan, he feels reopening our facilities is something the Paks could move on quickly.
He feels we have a moral commitment to finance the Karachi Steel Mill. However, he realizes we need a political context. So we might move ahead with recosting now but hold off final commitment.
He feels we are morally obligated to sell spare parts for military equipment we have already given Pakistan.

  1. Source: Johnson Library, National Security File, NSC Histories, Indian Famine, August 1966–February 1967, Vol. II. Secret. Prepared by Saunders.