264. Telegram 6684 From the Embassy in India to the Department of State1 2
New Delhi, May 31, 1972, 1430Z
Subject:
- USAID/India Technical Assistance Program
Ref:
- New Delhi 6181
- 1.
- Mission Director and Evans, Program Division Chief, have had separate meetings with Krishnaswami and DEA staff during past week.
- 2.
- Evans was told that elimination of the U.S. technical assitance program had been discussed at “the highest levels”. DEA argued that U.S. aid, whether bilateral or through multilateral channels, was of great importance to India, so a compromise was reached whereby the GOI would continue to request technical assistance in a few selected areas where U.S. superiority was obvious.
- 3.
- Krishnaswami said to Houston that the GOI did not like discussing “bits and pieces” of the aid program. They would prefer to talk about an aid program “in its totality”. Therefore, until such time as this might happen, the GOI will sign no new TA agreements, at least for FY 72 and 73. He carefully pointed out that the GOI would sign proage necessary to continue on-going projects.
- 4.
- DEA proposes eliminating the agricultural production and agricultural inputs programs. They plan to take over directly costs involved in Iffco. Within a ceiling of about thirty technicians, they would like to continue agricultural universities development, rice research, soil & water, rural electric coops, science education, and nutritional foods development. Personnel levels in these projects are being negotiated.
- 5.
- There was consierable discussion about U.S. and Indian support staff. Houston said the numbers would have to be reduced in line with the size of the program. He pointed out that Indian employees would most likely blame the GOI for what will be substantially number of separations. Krishnaswami seemed quite concerned about the situation.
- 6.
- The subject of Nepalese participants in India was discussed. Krishnaswami told Houston that “in view of the present uncertainties the GOI would be unable to approve the program for the current year.” FYI: 164 requests for such training have been held by DEA for two months 271 Nepalese are in India now and we do not believe they will be affected. End FYI. We are advising USAID/Nepal.
- 7.
- Trust fund replenishment is a recurrent theme in our discussions. DEA officials seem paralyzed at the thought of asking Parliament for an appropriation to cover locals costs of the U.S. aid program. PL 480 (!) loan funds they consider to be almost as difficult. We intend to keep pressing DEA on this subject in view of the imminent depletion of these funds.
- 8.
- Expect another meeting early next week.
Keating
- Source: National Archives, RG 59, Central Files 1970–73, AID (US) INDIA. Secret; Priority; Nodis. Eyes Only for Hannah and Sisco. Additional documentation on the further reduction of U.S. economic and technical assistance programs in India can be found ibid.↩
- The question of eliminating the U.S. technical assistance program was considered at “the highest levels,” and it was decided that India would continue to request technical assistance in areas where U.S. technical superiority was obvious.↩