791.5 MSP/7–552: Telegram
The Ambassador in India ( Bowles ) to the Department of State
59. For President Truman from Bowles (pass to Secretary Bruce). Hesitate bother you again after our long discussion of India’s needs. However, have just received shocking news Congress chopped our meager allotment Foreign Aid Act by nearly sixty percent. Instead $250,000,000 which I advised Administration this past winter urgently needed meet critical needs this key country, Mutual Security Agency budget and State reduced figure $115,000,000. This figure sliced by 32 percent to $77,000,000 in Foreign Aid Bill. Appropriations Bill now reduces India total to $34,000,000 which only 15 percent our original conservative request.
As you would expect, this news has been immensely reassuring Communist Party here which made American aid program its chief point of attack against Nehru government.
Cuts which Congress applied India and Southeast Asia more vicious than those any other geographic area. Men responsible for this, very individuals who time and time again have attacked you and your administration for its alleged failure “do enough for China and to save Chiang Kai-shek”. This reckless action, plus Mutual Security budget and State decision we undertake half of job, leave other half hanging in mid air, adds up to situation which no less than tragic.
Our program for stopping Communism at front door in Europe wholly sound and courageous, but must not leave back door unlatched. 600,000,000 people live Southeast Asia. If India goes under, this entire area will become untenable and repercussions Europe will be explosive. [Page 1656] Is not enough stop Communists Europe, it must be stopped entire Europe, Asia continent. Unless we can convince Congress and people that we must think in such terms, we may ultimately face disaster.
Believe next few years will demonstrate that far from having overstated dangers and opportunities, this area our proposals consistently modest side. For instance, survey by our economic staff during my absence indicates Indian Government faces balance payments situation even more acute than we reported Department earlier in year. Sterling balances will be exhausted by end 1952, except for necessary reserves held to support Indian currency. Our Technical Cooperation Administration field people report response villagers all over India to our community development work most enthusiastic. Unless more assistance can be forthcoming, our plans for next year or two must be drastically cut at time when ball starting roll our way.
For all these reasons, I earnestly hope you will send Congress special message requesting $125,000,000 grant to India. $25,000,000 this should be added to sum voted by Congress to enable us to do bare minimum job. $100,000,000 should be made available Indian Government purchase cotton, industrial raw materials and wheat, which can later be sold for rupees in Indian market. These rupees will enable Indian Government pay their share community development work which we had hoped could cover 30,000,000 village people within next year and also continue press forward with irrigation work.
Suggest this message should sharply attack opposition for their insincerity dealing with Asia, call their bluff on charges they levelled at associates constantly on China and thus put them on serious spot during election campaign. Any Republican who opposed your recommendations would at least have to stop talking about China.
If you do not plan call Congress back, or if you do not want reveal your intentions by special meeting until after conventions, earnestly hope you will issue special statement now hitting hard at action Congress on India, and saying you intend make them face this situation.
I believe that situation here requires this action. In addition, such move your part would be heartily welcomed here and provide great shot in arm to Indian Government, even though Congressional action not forthcoming.
Hope you will also request Averell Harriman and Mutual Security Agency to stretch their powers and funds to limit to increase dollar grants to India under present aid bill by picking up unused funds assigned less important areas or projects.
My apologies again for bothering you with this, but if you could see firsthand both dangers and opportunities in this vast Democratic country of 300,000,000 million people, you would understand my persistence.
[Page 1657]Whatever happens, you can count on me to do my best. We will work all the harder to meet our responsibilities here.1
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On July 7, Acting Secretary of State David K. E. Bruce gave President Truman a copy of this telegram. The President observed, according to Bruce, that he, too, “was very concerned at the big slash made in funds for India but that there was no way to reopen the question with Congress at this time.” (123 Bowles, Chester)
President Truman responded to Bowles’ telegram on July 8 in a letter to the Ambassador in which the President said, in part, that he had done the best he could to get the necessary aid funds from Congress, but that, in view of the circumstances, “we will have to meet it [the situation] as best we can and we will have to meet it without funds.” (Truman Library, Truman papers, PSF–Subject file)
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