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heavy burden on India's foreign exchange, and which can be re-sold
in India to provide the government with rupees which can be used in
the development program over and above those being provided in the
Government of India budget. There are a number of questions on the
substance of the Bowles proposal which should be discussed with him
in order to be in a position to weigh accurately the need for the
program against the legislative problems described below. These
in-
clude such matters as the precise size and character of the rupee
shortage of the Government of India, the rate at which the Indian
Government could provide trained active leadership for an expanded
program, and the effect of a postponement of the request for addi-
tional funds until next year.
While substantial progress has been made in obligating the $54
million appropriated for Fiscal Year 1952, very little of this
money has been spent, due to delay in Congression action on the
appropriation and the time required to negotiate a basic Point IV
agreement.
It is now clearly out of the question to seek additional money
in the present Mutual Security Program legislation, since both
Houses have already taken action on the authorizing Bill and agree-
ment has been reached by the conferees.
Ambassador Bowles has suggested the possibility of separate
legislation to cover India alone. There are considerable difficulties,
however, in doing this. (a) The Congress has been firm in its desire
to have all aid programs covered in a single package bill.
The Admin-
istration has taken the lead in volunteering the single padkage
approach. A special additional request now may therefore adversely
affect appropriations under the Mutual Security Program if a separate
bill were offered at thi 8 time. (b) The program of "must" legisla-
tion to be enacted is a large one, and the Administration has been
reluctant to add to the list in view of the very ti Lght schedule faced
by the Congross before the conventions. (c) We are on particularly
vulnerable grounds in asking for additional funds in view of the fact
that the $5L million appropriated for India for Fiscal Year 1952 is
still largely unspent, with only one month of the Fiscal Year yet to
go. (d) A congressional rebuff to an administration request for a
supplemental pr Fogram, which is more than likely, would undermine
Bowles' renarkably successful efforts in improving Indian-American
relations
ON
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"ocrText": "-2-\nheavy burden on India's foreign exchange, and which can be re-sold\nin India to provide the government with rupees which can be used in\nthe development program over and above those being provided in the\nGovernment of India budget. There are a number of questions on the\nsubstance of the Bowles proposal which should be discussed with him\nin order to be in a position to weigh accurately the need for the\nprogram against the legislative problems described below. These\nin-\nclude such matters as the precise size and character of the rupee\nshortage of the Government of India, the rate at which the Indian\nGovernment could provide trained active leadership for an expanded\nprogram, and the effect of a postponement of the request for addi-\ntional funds until next year.\nWhile substantial progress has been made in obligating the $54\nmillion appropriated for Fiscal Year 1952, very little of this\nmoney has been spent, due to delay in Congression action on the\nappropriation and the time required to negotiate a basic Point IV\nagreement.\nIt is now clearly out of the question to seek additional money\nin the present Mutual Security Program legislation, since both\nHouses have already taken action on the authorizing Bill and agree-\nment has been reached by the conferees.\nAmbassador Bowles has suggested the possibility of separate\nlegislation to cover India alone. There are considerable difficulties,\nhowever, in doing this. (a) The Congress has been firm in its desire\nto have all aid programs covered in a single package bill.\nThe Admin-\nistration has taken the lead in volunteering the single padkage\napproach. A special additional request now may therefore adversely\naffect appropriations under the Mutual Security Program if a separate\nbill were offered at thi 8 time. (b) The program of \"must\" legisla-\ntion to be enacted is a large one, and the Administration has been\nreluctant to add to the list in view of the very ti Lght schedule faced\nby the Congross before the conventions. (c) We are on particularly\nvulnerable grounds in asking for additional funds in view of the fact\nthat the $5L million appropriated for India for Fiscal Year 1952 is\nstill largely unspent, with only one month of the Fiscal Year yet to\ngo. (d) A congressional rebuff to an administration request for a\nsupplemental pr Fogram, which is more than likely, would undermine\nBowles' renarkably successful efforts in improving Indian-American\nrelations\nON"
}