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

413. Circular Telegram From the Department of State to Certain Posts¹

Washington, January 13, 1967, 6:17 p.m.

118255. For Ambassador from Secretary. Subject: Indian Food Crisis. Ref: Cirtel 101529.²

1. Dept cirtel 101529 outlined our concerns over food situation in India and our interest in wider sharing of responsibility for meeting India’s food aid requirements. Response to this effort has been encouraging and as a result of our efforts and those of GOI several countries have increased their contributions. So far, in this current drive India has received grants of 150,000 tons of wheat from Australia, 150,000 tons from Canada, 200,000 tons from USSR, and 35,000 tons from World Food Program (FAO). Sweden and Norway are also considering significant grants of fertilizer and France is considering grants of dried milk. In addition, India has purchased 150,000 tons of wheat from Australia, 50,000 tons from US, and plans to buy another 50,000 tons from US. GOI also buying rice from Burma and Thailand. On December 23 we supplemented these contributions and purchases with 900,000 tons of PL 480 foodgrains for immediate delivery.

2. This effort and shipments already in pipeline provide India with its required food imports of over 800,000 tons monthly through March. Much more needs to be done to tide India over until summer crop is harvested about October/November.

3. We are urgently reviewing additional steps to close this gap while encouraging GOI down road to greater food sufficiency. To this end President is planning another message to Congress before end of January on Indian food crisis which would make following points: (a) The burden sharing should be further internationalized on a much larger and more comprehensive and systematic scale than any yet attempted in order to achieve a genuinely multilateral program to handle India’s food problem; (b) To enlist the participation of others on more organized basis, food assistance should be placed along with economic aid, under World Bank Consortium. We feel time has come to add food as another responsibility of the Consortium. This is sound economics, fair burden sharing, and provides a proper channel for incremental food and food-related aid of donors who have not previously been involved in this effort; (c) As incentive, we are considering pledging substantial amount of foodgrain to the Consortium to be matched by other nations either in food, fertilizer, pesticides, shipping, etc. or by additional program assistance. These contributions would of course be additional to regular Consortium pledges; (d) To keep food flowing while these arrangements being worked out, another allotment of undetermined amount for immediate delivery to India would be authorized; (e) We remain vitally interested in Indian performance and in GOI efforts to improve its agricultural production.

4. To indicate priority President places on this effort, to highlight importance we attach to this multilateral program and to enlist support of those in best position to increase their contribution, the President is sending Eugene Rostow, Under Secretary for Political Affairs as his representative to discuss our proposals with appropriate officials of host government. He will acquaint them with President’s thinking and dimensions of our plans and seek indications of their position and extent to which we can count on their participation. President will want to review their soundings before message goes to Congress.

5. In undertaking this campaign we are fully conscious of demands being placed on our partners, all of whom have their Indian problems. As members of Consortium they are already confronted by substantially higher level of regular requirements. In addition IDA is seeking substantially increased contribution much of it to be earmarked for India. We estimate their share of emergency matching food program based on prorated share of Consortium pledges will total another $95 million divided roughly as follows: UK $26 million, Germany $27 million, Japan $20 million, Italy $12 million, France $6.5 million, Netherlands $3.5 million, Austria $1.25 million, Belgium $.75 million.6. In meantime Rostow and State/AID USDA team plans depart for New Delhi January 15 stopping in Tokyo enroute and proceed immediately thereafter to other posts. Exact schedule follows. Request you inform host government of Rostow’s impending arrival, begin set up meetings with appropriate key officials at highest levels and prepare background papers on host government AID programs to India, financial situation and other relevant facts useful to negotiations. Pass info to Rostow in New Delhi.

7. In separate message³ we are asking New Delhi to inform GOI of foregoing and to have latter instruct appropriate Indian representatives accordingly so that they will remain in step with us. In view of delicate consultations now necessary it is important that no leaks occur on detail or substance of these proposals. Press guidance follows.

Rusk

1. Source: National Archives and Records Administration, RG 59, Central Files 1967–69, SOC 10 INDIA. Secret; Immediate; Exdis. Drafted by Heck on January 12; cleared by Handley, Farr, Wriggins, Deputy Assistant Secretary for International Resources Edward R. Fried (E), Country Director for Germany Alfred Puhan, Country Director for Canada Rufus Z. Smith, Country Director for France and Benelux Robert Anderson, Country Director for Italy, Austria, and Switzerland Wells Stabler, Deputy Assistant Secretary for European Affairs Walter J. Stoessel, Jr., Country Director for Japan Richard L. Sneider, Country Director for the United Kingdom J. Harold Shullaw, and Eskildsen; and approved by Eugene Rostow. A handwritten notation on the telegram reads “OK/L,” suggesting that it was cleared with the President. Sent to Bonn, London, The Hague, Paris, Rome, Tokyo, 1 Brussels and repeated to New Delhi, Ottawa, and Vienna.
2. Document 401.
3. Telegram 118378 to New Delhi, January 13. (National Archives and Records Administration, RG 59, Central Files 1967–69, SOC 10 INDIA)