392. Telegram From the Embassy in India to the Department of State1

7055. Ref: State 83787.2

1.
At 10 am Nov 14 AID Director John Lewis and I called on Subramaniam to outline our plan for urgent review of Indian food situation first by experts from USDA, second by Congressmen. Dias, Secretary, Dept of Food, also attended meeting. We are forwarding by separate cable3 aide-mémoire which outlines conversation in detail and which we have conveyed to Subramaniam.
2.
After hearing our presentation Subramaniam stated he would welcome any action that would create a better understanding of India’s food problem and effort India is making to meet its needs as a basis for continued assistance.
3.
As noted in aide-mémoire, Subramaniam promptly brought up question of India’s urgent and immediate needs. In November 1,200,000 [Page 763] tons of foodgrains would be landed. In December he expected roughly one million tons. Unless additional shipments can be arranged very soon, arrivals in January will drop to 500,000 tons. This will mean reduced rations in all major cities just one month before national elections.
4.
Under these extreme circumstances he expressed hope that we would agree to release, on interim basis the additional 500,000 tons required to keep pipeline full until first of February. If an agreement were not signed in near future, India would undertake to pay for this emergency grain with its own foreign exchange.4
5.
I told Subramaniam we would convey his request to Washington and inform him as soon as we receive reply. As Dept knows from our previous cables, we do not feel that Subramaniam overstates extent of the emergency. We are therefore hopeful that it will be possible allow India obtain an additional 500,000 tons of food grain immediately either through prompt amendment to present PL480 agreement or under reimbursable procedure which was used earlier this year (Deptel 2119, May 2).5
Bowles
  1. Source: National Archives and Records Administration, RG 59, Central Files 1964–66, SOC 10 INDIA. Confidential; Priority.
  2. See footnote 3, Document 390.
  3. Telegram 7056 from New Delhi, November 14. (National Archives and Records Administration, RG 59, Central Files 1964–66, SOC 10 INDIA)
  4. Rostow passed on this request in a November 14 memorandum to the President. (Johnson Library, National Security File, Country File, India, India’s Food Problem, Vol. 2) The Embassy was informed, in telegram 86882 to New Delhi, November 17, that urgent Indian cash purchases of grain would be shipped expeditiously so that deliveries would continue. (National Archives and Records Administration, RG 59, Central Files 1964–66, SOC 10 INDIA)
  5. Telegram 2119 was sent to New Delhi on May 3. (Ibid., AID (IBRD) 9 INDIA)