Foreign Relations of the United States, 1961–1963, Volume XIX, South Asia

14. Memorandum From the Under Secretary of State for Economic Affairs (Ball) to President Kennedy⁰

Washington, April 19, 1961.

SUBJECT

• Proposed United States Aid Commitments to India and Pakistan

It is proposed that the United States indicate at the forthcoming Consortium of free world countries on India (April 25-27) a willingness to commit up to $1 billion in the next two years in support of India’s external resource requirements in the Third Five-Year Plan period. It is also proposed that a United States commitment be indicated at the Pakistan Consortium meeting, now scheduled for late May to consider Pakistan’s Second Five-Year Plan. While we cannot suggest with precision an appropriate amount for a Pakistan commitment, it would probably be of the order of magnitude of $250,000,000. Each commitment would include all United States dollar assistance but would not include food provided under P.L. 480. The commitments would be made explicitly subject (a) to the availability of United States funds, (b) to the provision of assistance by other advanced nations as noted in Section III of the attached study entitled Proposals for United States Aid Commitments to India and Pakistan,¹ and (c) to other conditions noted in that study.

These proposals have been agreed to in substance by the appropriate officials in the Department of State, the Department of the Treasury, the Bureau of the Budget, ICA, and the DLF. They have also been cleared in substance by the Task Force on Foreign Economic Assistance. The attached study has been reviewed by Dr. Max Millikan.

We believe it essential that the United States make a substantial commitment to the requirements of the Indian Plan in April and to the Pakistan Plan in May, recognizing that such commitments anticipate the new aid program prior to Congressional consideration of the program.

Recommendation:

That you approve the recommendations in the attached document.²

George W. Ball

0. Source: Kennedy Library, National Security Files, Countries Series, India, General, 4/16/61-4/30/61. Confidential.
1. The attached 13-page study is not printed.
2. The recommendations in the conclusion of the study called for approval of 2-year commitment to India of up to $1 billion, approval in principle of a commitment to Pakistan in an amount to be determined before the Pakistan Consortium meeting, and authorization for Presidential messages to be sent to the other governments involved in the two consortia urging similarly substantial commitments. A note on a copy of the memorandum reads: “Approved per RDungan to FAMau 4/22/61.” (Department of State, Central Files, 891.00-Five Year/4-1961)