305. Telegram 8436 From the Embassy in Pakistan to the Department of State1 2
Islamabad, October 12, 1972, 1229Z
Subject:
- PL 480 Title I-Pak Request for 400,000 Tons
Ref:
- (A) Islamabad 8317 (B) Islamabad 7484
- 1.
- In connection with our consideration of Pakistan’s urgent request for another 400,000 tons of wheat to see country through until next harvest, I believe issue merits your personal attention. Would like to recall to your attention the exceptional representations Pres Bhutto has made to me on this subject. These were noted in ref (B) which I hope you will reread. Bhutto’s urgent interest in obtaining assurance on additional 400,000 tons was reiterated to me today during course of telephone conversation with him on another subject. Governmental interest as measured by President’s personal concern has not been higher on any other single economic aid issue during my three years in Pakistan. It is clear that government sees this wheat as essential to internal stability and its domestic political strategy, and is strongly banking on U.S. Title I to finance it. Within framework of Pakistan’s politically determined price constraints, we are convinced that need exists. We hope positive response to Pak request will be forthcoming shortly despite current squeeze on US wheat stocks, of which we acutely aware.
- 2.
- Working closely with AID, I have tried to use this request for 400,000 tons to obtain a better focus by GOP on its agricultural policies. I consider the price adjustments recently announced as a useful first step, but only a first step. Within framework of a positive decision by the US on the 400,000 tons, I intend to discuss with Pres Bhutto important measures his govt should take to accelerate its agricultural production programs. I will tell him that even despite his urgent preoccupation with internal and external political problems, his govt ought to move faster to articulate and put into effect an agricultural strategy. The govt needs to assure adequate inputs, including fertilizer and pesticides; developing capacity throughout the govt for agricultural policy analysis; and pursue series of initiatives in areas of agricultural research, barani (rainfed) agriculture and water utilization at the farm level in the irrigated areas. I will tell him that our positive decision on 400,000 tons reflects a truly exceptional effort by USG to be helpful to Paktstan, at time when our wheat stocks have been very heavily committed elsewhere as he is aware; decision recognizes the signal importance which Bhutto attached to this request as voiced in his discussions with me; and, finally, i will say that our decision is taken with assumption that pakistan during coming year will put more money and more talent behind its own agricultural production programs. I will add that our AID mission stands ready to be helpful to GOP on such programs if our help is wanted. Wheeler and I plan to discuss this approach with MacDonald during his visit later this month.
- 3.
- I believe favorable decision on Pak request will improve atmosphere, beyond realm of agriculture, for our continuing discussions with Bhutto and GOP on variety of other issues, he has promised as much.
- 4.
- I would appreciate any word—even of interim nature—you could give me which I could pass to Bhutto within next ten days.
Sober
- Source: National Archives, RG 59, Central Files 1970–73, AID (US) 15–8 PAK. Confidential; Exdis. Pakistan made the case for additional PL–480 supplies in an aide-mémoire submitted to the U.S. Embassy on October 3. According to the aide-mémoire, the wheat harvest in Pakistan had suffered from drought and unless the requested supplies were provided by the United States, the Government would be confronted with sharp rises in politically sensitive wheat prices. (Telegram 8317 from Islamabad, October 6; ibid.)↩
- Chargé Sober recommended approval of a Pakistani request for 400,000 tons of wheat under PL—480 to offset the effects of a drought. Sober noted Pakistani President Bhutto’s urgent interest in the request.↩