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

250. Memorandum From Harold Saunders of the National Security Council Staff to the President’s Assistant for National Security Affairs (Kissinger)¹ ²

Washington, April 18, 1972

SUBJECT:

• Congressional Presentation on Indian Aid Program—Instructions to Keating

You will recall that at the Monday SRG on South Asia it was mentioned that a telegram should be sent to New Delhi to put Ambassador Keating in a position to explain the presentation of the Indian aid program to the Congress.

As you know, that presentation will carry a “provisional” figure of $90 million for India for FY 1973. This presentation will go to the Congress tomorrow (Wednesday) and we need to give Ambassador Keating an explanation of our procedure that is consistent with our interests.

A State Department telegram is in the process of clearance which, after simply quoting the language of the Congressional presentation, would have Keating tell the Minister of Finance that we have “agreed on this provisional allocation for the Indian program and on the unallocated reserve for development lending in Asia in order to keep our options open while our economic assistance relationship is under review.” If asked about the status of our aid program, Keating would be instructed to say that it remains unchanged.

The argument for having Keating make this kind of presentation is at least to get our reasoning to the Indian government directly so that it does not have to be filtered through the press. We cannot expect a reasonable reaction in any case and the present atmosphere resulting from their reaction over Vietnam will not make it any more so, but at least we will have put the truth on the record.

RECOMMENDATION: That you authorize us to clear this instruction to Keating tonight so as to give the embassy time to make a pre-emptive approach.

Approve
Other

1. Source: National Archives, Nixon Presidential Materials, NSC Files, Box 598, Country Files, Middle East, India, Vol. V, 31 Dec 71–July 1972. Limited Official Use. Sent for action. Sent to Kissinger through Haig. Kissinger initialed the approval line. Saunders added a handwritten note in the margin that reads: “with addition conveyed orally by Kennedy.” The addition is not marked on the attached draft telegram. A comparison of the draft text with the telegram as sent on April 19 reveals that Kissinger added the penultimate sentence before approving the telegram. That sentence contained an important qualification: “Decisions on allocation will depend on the results of that review and on the circumstances at the time, and you should make clear that no inference should be drawn one way or the other regarding what amounts, if any, might be made available.” See Document 253.
2. Kissinger approved a telegram to Ambassador Keating instructing him to explain to the Indian Government the presentation being made to Congress on the proposed “provisional” assistance program for India.