891.2311/3–1051
Memorandum of Conversation, by the Acting Officer in Charge of Pakistan–Afghanistan Affairs (Gatewood)
Subject: Possible Unfavorable Effects of US Provision of Wheat to India1
| Participants: | Mr. Mohamad Ali, Secretary-General, Government of Pakistan |
| SOA—Mr. Mathews | |
| Mr. Gatewood |
In the course of today’s conversation concerning the proposed UN resolution on Kashmir, Mr. Mohamad Ali referred to the considerable drain on the Indian economy resulting from the maintenance of troops in Kashmir and pointed out that this drain particularly affected the Indian transportation system, the volume of petroleum and automotive imports, and the Indian budget. He said he did not intend to suggest that the US fail to provide the wheat requested by India (either on a gift or loan basis) and that he understood it might be considered “heartless” to attach any political conditions to this transaction, such as the settlement of the Kashmir issue; however, he emphasized that the continued existence of the dispute was forcing Pakistan to maintain a high level of defense expenditure and he expressed the hope that the US would utilize its influence to impress on India the need for devoting its resources to constructive purposes which would bring about peace and prosperity on the subcontinent as a whole.
Mr. Mathews said that the Department had been aware of this need ever since partition and, after complimenting Mr. Mohamad Ali on the effectiveness of Pakistan propaganda in the US directed against the proposed US gift of wheat to India, reminded him that some of these Pakistan arguments might later be used in Congress to oppose the fulfilment of “other desires” of this type that might be expressed by South Asian countries.
Mr. Baig pointed out that his Government had expressed no wish for US aid economic aid and the conversation turned to other matters.