Office of the Historian

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

Washington, October 22, 1967, 2001Z.

58064. For Ambassador from Secretary.

1. President has asked me convey following to you:

A.
A message2 going forward to you outlines elements of a food package we are asking you discuss with GOI. This is a large program involving three and one-half million tons of foodgrains and some $250 million of U.S. resources. Its dimensions are yet another indication of our determination to work with the Indians to meet their food shortages and help them on road to self-sufficiency in foodgrains. This effort on our part is particularly significant as it occurs at a time when aid resources we can offer India and other countries are declining.
B.
In putting this proposal to Indians you should also make crystal clear to them that our ability to continue to be forthcoming on the whole range of our assistance relations with the GOI is closely related to India’s performance in reducing diversion of resources from economic to defense expenditures.
C.
Our decisions on aid will be closely related to a satisfactory resolution SU–7 matter (State 56877).3
D.
We do not propose at this time to make our food package contingent on reduction in defense budget but Indian actions in this field will weigh heavily in decisions we will be making shortly on division of aid appropriations, future PL–480 agreements, Consortium meeting and other forums which contribute to India’s growth. Indians should realize their performance will have important bearing on these decisions, on Congressional attitudes, and on efforts we are making to get Pakistanis to cut back their defense spending.

Rusk
  1. Source: National Archives and Records Administration, RG 59, Central Files 1967–69, SOC 10 INDIA. Secret; Immediate; Exdis. Drafted by Heck on October 20. Cleared by Handley, Spain, Wolf, AID’s Assistant Administrator for Near East and South Asia Maurice J. Williams, and Walt Rostow, in substance by Reid (OSD/ISA) and Freeman. Approved and initialed by Rusk.↩
  2. Not found.↩
  3. Dated October 19. (National Archives and Records Administration, RG 59, Central Files 1967–69, DEF 19–6 USSR-INDIA)↩