429. Memorandum From Secretary of State Vance to President Carter1
[Omitted here is material unrelated to Pakistan.]
2. Pakistan Aid: During the past week, Foreign Affairs Advisor Shahi (before a Pakistani audience)2 and President Zia (with an American journalist)3 have indicated that Pakistan is interested in a U.S. assistance package which does not have an FMS component. The newspaper stories indicating a complete Pakistani rejection were overdrawn. Both Shahi and Zia talked in terms of economic aid, debt rescheduling, cash purchase of U.S. military equipment and a Congressional affirmation of the 1959 Agreement, not linked to the aid package. Although this offers us the basis for further discussions with the Pakistanis—and they may, on their own, reopen the dialogue—we plan to hold off initiating discussions until we see whether, as a result of the budget review, we will have funds available for Pakistan.
[Omitted here is material unrelated to Pakistan.]
- Source: Carter Library, National Security Affairs, Brzezinski Material, Subject File, Box 23, Evening Reports (State): 3/80. Secret. Carter initialed “C” in the upper right-hand corner of the memorandum.↩
- In telegram 2110 from Islamabad, March 6, the Embassy summarized a Pakistani Times article that reported a March 5 speech made by Shahi to the first All Pakistan Local Bodies Convention. According to the article, Shahi rejected the U.S. “aid package as proposed.” (National Archives, RG 59, Central Foreign Policy File, D800115–0739)↩
- In telegram 2181 from Islamabad, March 9, the Embassy reported Selig Harrison’s March 8 interviews with Zia and Shahi. Harrison, characterized by the Embassy as an “American scholar” who interviewed the two separately, informed the Embassy that Zia and Shahi would still accept economic assistance if it were independent of military aid. (National Archives, RG 59, Central Foreign Policy File, D800121–0902)↩