Office of the Historian

178. Telegram 231919 From the Department of State to the Embassy in India1 2

Washington, October 22, 1974, 1238Z.

Subject:

  • Food Aid to India

1. You are authorized inform GOI that USG has allocated approximately 300,000 metric tons wheat under Title I, PL 480, for delivery first half CY 1975. Actual amount shipped will be controlled by $54 million to be allocated for the agreement and price of wheat at time purchases are made.

2. GOI should be made explicitly aware provisions Sec. 401 of PL 480 Act and PL 480 agreement language which subject implementation to commodity availability at the time purchase authorizations are issued.

3. GOI should be informed as soon as possible and before Secretary’s visit. We hope to be able begin negotiations by late November. Normal practice, and our preference, is for negotiations in New Delhi.

4. While normally there is no public announcement until agreement is signed, we believe exception desirable in this case to dispel conflicting rumors and press stories. Accordingly, propose GOI and Embassy announce jointly prior Secretary’s visit that, “the United States and India have agreed to begin negotiations soon of an agreement for shipment of approximately 300,000 metric tons of wheat to India on PL 480 concessional terms during the first half of CY 1975. The U.S. will keep under consideration the possibility of additional concessional sales during this period, in light of foodgrain availabilities.”

5. (We can make no commitments at this time for additional programming during FY 75, but India’s requirements along with those of other countries will be considered at next review of PL 480 availabilities and budget situation in December.)

Kissinger
  1. Source: National Archives, RG 59, Central Foreign Policy Files. Limited Official Use; Immediate. It was drafted by Morley; cleared by EB/OFP, AID/FFP, USDA, Treasury, GC/AID/TFHA, and NEA; and approved by Kissinger. Moynihan reported disappointment on the part of the Indian officials when he relayed this amount. (Telegram 14249 from New Delhi, October 23; Ford Library, National Security Adviser, Presidential Country Files for Middle East and South Asia, Box 12, India, Telegrams to SecState NODIS (1))↩
  2. Kissinger authorized Ambassador Moynihan to inform the Indian Government of the sale of 300,000 tons of PL–480 wheat for 1975.↩