Foreign Relations of the United States, 1969–1976, Volume E–7, Documents on South Asia, 1969–1972

310. Telegram 201141 From the Department of State to the Embassy in India¹ ²

Washington, November 4, 1972, 0022Z

Subj:

• Indian Debt Rescheduling

1. USG has decided to participate for one year rpt one year in World Bank proposal for debt relief for India with US share of $29.12 million.

2. We have informed World Bank of this decision as part of our continuing technical discussions with bank. Bank is informing Indians and other AID-India Consortium members.

3. Pending further guidance Embassy should avoid any interpretive comment regarding this decision in discussions with Indian officials. Embassy should not rpt not issue press statement and should restrict response to possible press queries to simple confirmation that decision made.

1. Source: National Archives, RG 59, Central Files 1970–73, AID (US) 9 INDIA. Confidential; Immediate. Drafted on November 3 by Schneider; cleared in the Office of International Finance and Development of the Bureau of Economic and Business Affairs by John Gervers, and in the Office of Planning and Development of AID’s Bureau for Asia by Alfred D. White; and approved by Meyer.
2. The U.S. agreed to participate with the other members of the India Consortium in restructuring India’s foreign debt.