Telegram from Ambassador Chester Bowles to Secretary of State Dean Acheson

INCOMING TELEGRAM Department of State TELEGRAPH BRANCH 7-H SECRET SECURITY INFORMATION Action Control: 2432 Rec'd: July 5, 1952 SS FROM: New Delhi 9:38 p.m. Info RDS DCR TO: Secretary of State EXE U.S. DCRM NO: 55, July 5, 2 p.m. FOR PRESIDENT TRUMAN FROM BOWLES (PASS TO SECRETARY BRUCE) o 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 fig- ure $115,000,000. This figure sliced by 32 percent to $77,000,000 in Foreign Aid Bill. Appropriations Bill now (rpt 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 vi- cious 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 (rpt no) less than tragic. Our program for stopping Communism at front door in Europe wholly sound and courageous but must not (rpt 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. Is not (rpt 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 DECLASSIFIED STATE DEPT. LTR.11-14-t3 balance payments Project NLT 83-10 REPRODUCTION FROM THIS SECRET SECURITY INFORMATION COPY, IF CLASSIFIED, IS By NLT- HC NARS, Date 11-21-23 PROHIBITED