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OCR Page 1 of 3NLT(Naval. Aide) 140
OFFICE OF
THE SECRETARY OF STATE
DECLASSIFIED
WASHINGTON
State By. DEB NLT, Date 6-18-85
Dept. E.O. Guidelines, March 6, 1982
12065, Sec. 3-402
December 18, 1950
T-P
E
SUMMARY OF TELEGRAMS
INDIA
Indian Finance Minister Deshmukh has
approached Ambassador Henderson in
New Delhi in an effort to enlist his support for an Indian request for
US assistance in obtaining additional food grains from the US for
India during 1951. Deshmukh stated that the instructions to the
Indian Ambassador in Washington to take up this subject with the US
represented in his view the formal turning point in Indian economic
relations with the US and meant that India after careful Cabinet
consideration had come to the conclusion that economic assistance
from the US was vital to the stability of India. Deshmukh felt that
the economic consequences of this decision would be far-reaching.
He said that the Indian Ambassador would ask the US for assistance
in obtaining between 1. and 2 million tons of food grains during
1951 and, in view of the Indian dollar shortage, was to explore the
bases on which the US might be prepared to make additional food
grains available. He informed Henderson on a confidential basis
that while the Indian Ambassador was instructed not to ask for grant
aid, she should make it clear, if the occasion arose, that the
Government of India would deeply appreciate obtaining food grains
on a grant basis. Henderson informed Deshmukh that, on the basis
of his present information, he could neither encourage nor
discourage him on this subject. However, Henderson has expressed
his personal view to the Department that the decision of the Indian
Cabinet is of the utmost significance, since it means that opposition
to closer economic relations between India and the US has crumbled.
He expressed his personal conviction that a US decision to extend
considerable economic aid to India in the near future would be in our
national interest and that downright rejection or evasive treatment
of the Indian request might have extremely adverse effects on our
position in India and South Asia.
UNITED NATIONS
Our UN delegation has informed us that
on Friday afternoon Ambassador Gross
and General Crittenberger, as military adviser, met with the group
of three, UN President Entezam, Pearson of Canada, and Rau of
SECRET