Foreign Relations of the United States, 1977–1980, Volume XIX, South Asia

268. Telegram From the Department of State to the Embassy in Pakistan¹

Washington, October 26, 1977, 0135Z

255592. Cherokee, for the Ambassador. Subject: Reprocessing Plant and the Question of Aid. Ref: Islamabad 10226.²

1. We have carefully considered your recommendation that we resume aid to Pakistan. We agree that to the best of our knowledge, there has been no violation of the Glenn Amendment, and that there are persuasive economic and political reasons for resumption.

2. As you pointed out, prior consultation with key congressional leaders would be essential. Unfortunately, we see no way to avoid risking a leak which would embarrass the French, by suggesting that they were not fulfilling their commitment.

3. Moreover, the administration is extremely anxious to have the non-proliferation policy bill³ passed during this session of Congress but the situation on the Hill is fragile. Consultations leading to resumption of aid to Pakistan, in face of the publicly stated intentions of both the French and Pakistanis to move ahead on the reprocessing contract, could be used to delay passage of this legislation which is critical to our non-proliferation efforts worldwide.

4. We, therefore, have concluded that we should continue our aid deferral for the time being, but we will review the situation again in two to three weeks.

5. Nevertheless, we agree you should approach Zia, particularly to disabuse him of any misunderstanding about the Glenn Amendment and to reaffirm our continuing desire for close relations and that resolution of the reprocessing issue would facilitate our ability to be helpful. You should draw on the following points:

—Affirm our desire for close relations with Pakistan and our support for its national sovereignty and peaceful development.

—Suggest our awareness of their security concerns, and indicate interest in the proposal for a South Asian joint declaration on nuclear weapons mentioned by Agha Shahi to the Secretary.

—Restate unequivocally our concern about the reprocessing plant in the context of the danger of nuclear competition in the subcontinent which would not contribute to the security of any of the parties.

—Explain the Glenn Amendment and its implications for both development assistance and the military training program (IMET).

—(If asked about the status of aid) note that we are continuing to review the situation, but that we face a difficult problem given Pakistan’s stated intention of proceeding with the reprocessing contract. We note, however, Agha Shahi’s remark to the Secretary that no equipment is currently being shipped.⁴ We would hope the Pakistanis could refrain from pressing for transfer of equipment since any transfers after August 4 automatically bring the Glenn Amendment into effect. (If Zia asks for details, you may inform him that 44 million dollars worth of loans have been authorized; the grant aid can be reprogrammed.)

6. FYI. You should not suggest that the GOP undertake further discussions with the French on modification of the reprocessing plant contract. The Pakistani rejection of the French proposal is a potentially positive outcome from our point of view since it clearly signals their desire for plutonium and therefore could lead France to cancel the project. We have grave doubts that co-processing could meet our nonproliferation concerns and strongly prefer that Pakistan obtain no reprocessing technology or equipment from abroad.

7. FYI. Ambassador Yaqub Khan has requested an appointment with Governor Gilligan to discuss aid. We propose to suggest to Yaqub Khan that he meet instead toward the end of this week with Assistant Secretary Atherton and AID Assistant Administrator Sullivan. Atherton and Sullivan will draw on the above talking points in their discussion here.

Vance

1. Source: National Archives, RG 59, Central Foreign Policy File, P840077–2300. Secret; Cherokee; Immediate; Nodis. Sent for information to Paris. Drafted by Coon; cleared in S/AS and S/S–O, and by Sullivan, Nye, Oplinger, Dobbins, Nosenzo, and Atherton; approved by Vance. On October 26, this telegram was repeated to the White House. (Ibid.)
2. In telegram 10226 from Islamabad, October 14, the Embassy reported that since the French supply of nuclear reprocessing equipment to Pakistan was stopped—thus fulfilling U.S. objectives—and the Glenn Amendment, “as far as we know,” was not violated, continuing “the current suspension of new economic assistance places us in a punitive posture, when that is no longer appropriate, and adds unnecessarily to the strong negative currents that are plaguing US-Pak relations at this time.” Thus, the Embassy recommended, aid to Pakistan should resume. (National Archives, RG 59, Central Foreign Policy File, P840077–2288, N770006–0430)
3. Reference is to Nuclear Non-Proliferation Act, which Carter transmitted to Congress on April 27. He signed the bill on March 10, 1978. See Document 6.
4. See footnote 10, Document 265.