Office of the Historian

308. Memorandum From the Country Director for India, Ceylon, and Nepal (Schneider) to the Assistant Secretary of State for Near Eastern and South Asian Affairs (Sisco)1 2

Washington, October 30, 1972

SUBJ:

  • Recent GOI Actions Affecting US Activities in India

You asked for a check-list of recent GOI actions curtailing American programs in India. Specific actions taken by the GOI since December 1971 follow:

  • —Drastically reduced AID personnel in India.
  • —Effectively ended use of trust fund rupees to support AID local administrative costs.
  • —Stopped making use of US AID participant training programs in the US.
  • —Refused to approve an Exim loan to an Indian company.
  • —Stopped making use of US military training programs offered for Indian military personnel in US installations.
  • —Ended providing US-financed participant training in India for Nepalis.
  • —Outspokenly attacked the US for CIA interference in India.
  • —Approved no new US-owned rupee-funded joint US-Indian scientific research projects.
  • —Refused to approve rupee-funded international visitor program (IVP) invitations to Indians to visit the US.
  • —Issued no visas for individual scholars or professors to visit India under cultural exchange programs.
  • —Cancelled MAC agreement and refused to clear additional MAC cargo and passenger flights to India.
  • —Forced removal of defense attache and ODRI aircrafts.
  • —Refused to invite COMIDEASTFOR to pay farewell visit to India.
  • —Applied new rule requiring non-nuclear declaration prior to approval of ship visits; this makes US Naval visits to India impossible.

In addition, the GOI has pressed demands for payment of Indian income tax on behalf of American International School teachers, the US director of USEFI, and American director of Wheat Associates; thereby jeopardizing the future of these institutions in India.

There are indications that the GOI intends to curtail the Library of Congress book-purchasing program in India.

We have learned indirectly that the GOI is also restricting US voluntary agency rupee-financed programs in India.

No new Peace Corps groups have been approved since December 1971; the last volunteer would leave by December 1973. The GOI might place a limit (say 50 PCVs) on all national volunteer programs in India.

  1. Source: National Archives, RG 59, Central Files 1970–73, POL INDIA–US. Confidential. Drafted in NEA/INC by Donald W. Born. Sent through Armin H. Meyer, who was assigned to NEA as a special consultant after returning to the Department following 3 years as U.S. Ambassador to Japan. He had previously been Ambassador to Lebanon and Iran.↩
  2. At Sisco’s request, Schneider listed U.S. programs in India that had been curtailed by the Indian Government since December 1971.↩