Foreign Relations of the United States, 1969–1976, Volume E–8, Documents on South Asia, 1973–1976

220. Telegram 863 From the Embassy in India to the Department of State¹ ²

New Delhi, January 17, 1976, 0805Z.

Subject:

• Mrs. Gandhi’s Attacks on the US

Ref:

• State 007663

Summary: The DCM on January 17 informed Joint Secretary of the Americas Teja that because of unwarranted Indian allegations about the US there was insufficient mutual trust for the US to proceed with a program of bilateral development assistance in FY 76. End summary.

1. The DCM told Teja that he had been asked to follow up on the conversation between the Ambassador and FonMin Chaban which had taken place on January 15. The DCM recalled that Teja had earlier said the US should not pay attention to allegations made by various mid-ranking Indian Government and Congress Party officials but should look to the FonMin and Prime Minister for statements on GOI policy. This time the same unfounded allegations had been made by the most senior Indian officials responsible for foreign policy. Consequently, in view of the obvious lack of mutual trust and confidence, the USG has decided it would be best that we not rpt not proceed with program of bilateral development assistance in FY 76. We would defer formal aid talks until FY 77. We made this decision for two reasons: first, in the face of serious and unfounded allegations about the US we did not see how we could justify a new program of development assistance with the Congress and the American people. Aid to India has always been controversial, and with the prominent publication of the attacks on the US in the American press justification would be difficult. Second, as we had discussed with Teja many times before, cooperative programs require an atmosphere in India of confidence if they are to be free from attack. This atmosphere clearly does not exist and therefore we have decided we should not engage in a new program of development assistance.

2. Teja inquired whether the DCM was speaking under instructions. The DCM answered in the affirmative, saying that the instructions came from the same high level as those of Ambassador Saxbe. Teja made no comment and indicated he would report the DCM’s presentation to his superiors.

3. In a brief discussion of the Science and Technology Subcommission meeting which followed, the DCM informed Teja that it was our view that the meetings should be working sessions between the technical level personnel and that there should be no particular protocol associated with them. For example, Ambassador Saxbe planned no protocol dinner for the delegations. Teja nodded and said that the heads of the two delegations might work out social arrangements between themselves.

Saxbe

1. Source: Ford Library, National Security Adviser, Presidential Country Files Middle East and South Asia, Box 12, India, State to SecState NODIS (3). Secret; Nodis.
2. The Embassy reported the DCM’s conversation with Indian Joint Secretary of the Americas Teja in which he informed the Indian Government that the U.S. would not proceed with its program of bilateral development assistance to India for fiscal year 1976 because of “insufficient mutual trust” between the U.S. and India.