134. Telegram 7042 From the Embassy in India to the Department of State1 2
New Delhi, June 15, 1973,
1540Z.
Subject:
- Aid India Consortium
Ref:
- State 115596
- 1.
- We do not understand Ambassador Kaul’s statement to Ambassador Meyer that our proposed statement on development assistance pledging was “not very helpful.” Your cable continues “uncertainty about availability of US aid would hamper India’s preparation for fifth plan”. I gather this summarizes his subsequent statement.
- 2.
- Just who in the hell does he think he is, and what government does he represent? I spent almost an hour with Planning Minister D.P. Dhar on June 13 the same day Meyer saw Kaul. Dhar, who is drawing up the five year plan, never mentioned American aid. To the contrary he indicated that there would be no new aid to India from outside of the five year plan. I asked was this not a considerable change from the prospect previously held worth of no net aid at the end of the period. He agreed. I asked DOD the plan envision resource flow through private capital investment. In that event it might help if we knew “the magnitudes as American business might be interested. Not really, said he. India does not need resources, he said. (A memcon on this meeting follows.)
- 3.
- This is insufferable. If they want aid they should ask for [Page 2] it and if they get it they should acknowledge that they have done so.
- 4.
- Kaul spent many a happy hour in Moscow. What have the Soviets done for India lately? When is Kaul going to indicate that he realizes that we make the contributions of “nonmember” countries quite seriously?
- 5.
- I think you should get Kaul back in and straighten out a few things with him. How come that he is disappointed about our positive statement on new aid at the consortium when the Indians haven’t even asked us for new aid yet. Surely he must have read the President’s report about the subjects which must be considered in our economic dialogue before we can agree on aid. We shouldn’t let him feign disappointment when in fact we are moving forward and looking—no, waiting—for the Indians to do likewise.
Moynihan
- Source: National Archives, RG 59, Central Files 1970–73, AID 3 India. Confidential. State 115596 printed as Document 131. Assistant Secretary Sisco talked to Kaul on July 11 and stated that there was a “new realism” in U.S. foreign policy and the Indian public posture could affect future aid to India. (Telegram 135892 to New Delhi, July 11; National Archives, RG 59, Central Foreign Policy Files)↩
- Ambassador Moynihan transmitted a cable in reaction to remarks Indian Ambassador Kaul made to Ambassador Meyer on June 14. Moynihan’s recent conversations with Indian Planning Minister Dhar on June 13, he believed, contradicted Kaul’s assertion that lack of U.S. aid would hinder the development of India’s five-year plan.↩