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

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

Washington, October 27, 1967, 0017Z.

60510. New Delhi 4882.² Subject: Memcon with B.K. Nehru on Food.

1. Following is uncleared summary of memcon prepared by Secretary Freeman of October 21 talk between President, Ambassador Nehru and Secretary Freeman. Full memcon³ being pouched.

2. Nehru thought commercial grain question could be worked out although he expressed concern about relations with Australia and Canada.

3. Nehru said Chief Ministers recently concluded they could not liberalize food zones at this time and certainly could not abolish them. Assuming a crop of 95 million tons (which by no means assured) and imports of 7.5 million tons, Nehru said per capita intake would be somewhat less this year than in 1964, allowing for seed, feed, private stocks, and general attrition. Therefore, Nehru said, India not in strong enough position to abolish zones. (USDA estimates indicate per capita availability in 1967/68 virtually identical to that of 1964/65, with same assumptions re imports, private stocks, etc.)

4. Freeman acknowledged political problem in abolishing zones but pointed out danger in not abolishing them. Argued that bold step at this time would tend to counteract downward pressure on prices from big crop in the most productive states. Producers increasingly adopting new techniques and methods. Sharp drop in prices to producers could disillusion Indian farmer and set back entire agricultural effort seriously. Continuation of zones would have that effect and now is time to abolish them. With two million tons of GOI reserves clearly attainable, plus at least an increase of 2.5 million tons in private hands, this is time to move.

5. Nehru discussed necessity to listen to local decision-makers and democratic process which would reflect itself in demands of people to abolish food zones should the above contingencies take place.

6. Freeman replied sometimes people in democracy must lead rather than count noses and issue of zones or no zones was not, and was not likely to become, political question on which Indian people could express themselves.

7. Nehru replied that should move in direction of abolishing zones be made, there ought to be more than six months’ assurance of grain from U.S.

8. Conversation ended with directive by President that Secretary Freeman review his analysis of India situation and confirm his strong position that food zones in India should be completely abolished now and a maximum amount of pressure brought to bear to accomplish that goal or explain any adjustments that might be called for.

9. Nehru was asked to communicate with GOI and see what could and would be done by them to abolish food zones.

Rusk

1. Source: National Archives and Records Administration, RG 59, Central Files 1967–69, SOC 10 INDIA. Secret; Priority; Exdis. Drafted by Mary S. Olmsted (NEA/INC) on October 25, cleared by Heck and Hamilton at the White House, and approved by Handley.
2. In telegram 4882 from New Delhi, October 23, Bowles asked for a report on the President’s conversation with Ambassador Nehru. (Ibid.)
3. A copy of the memorandum of conversation was sent by Freeman to Rusk on October 24. (Ibid.)