NSSD 3-84 United States Relations with India and Pakistan

9 SECRET SYSTEM II 90783 THE WHITE HOUSE JNGL WASHINGTON National security July 23, 1984 Study Diriciive 3-84 U.S. Relations with India and Pakistan (S) It has been the policy of this Administration to foster closer ties with India while at the same time improving our relations with Pakistan and China. We have encouraged Indo-Pakistani normalization because importance to the stability of the region. Continued Soviet occupation of Afghanistan and on-going resistance by the Mujahadeen have increased our stake in Pakistan. Additionally, Pakistani ties to Persian Gulf security require its territorial integrity and security. Similarly, a strong India, stripped of its democratic values and closely aligned with the Soviet Union would have very serious consequences for Western interests in Southwest Asia, the Indian Ocean and Southeast Asia. A weakened India, torn by ethnic and religious crises and economic weakness, would almost nent with potentially far-reaching consequences. 10 is certainly lead to serious instability throughout the entire subconti- For the past three-and-a-half years we have attempted to smooth over some of the more serious obstacles in U.S.-India - relations while accepting the reality that the long standing military relation- ship between India and the Soviet Union is unlikely to be ended any time soon. We have also worked to strengthen the relationship with Pakistan. The Vice President's recent visit to the subcontinent as well as indications we have had since the visit suggest that India wishes to further improve relations while Pakistan would like to sustain the ties beyond 1986, when our current aid agreement expires. Additionally, Indo-Pakistani normalization, which we have encouraged, is moving forward. We need to find ways of sustaining the improving relations because the costs of a reversal are high: possibility of another war at a higher level of violence; dismember- ment of Pakistan; end of effective opposition to the Soviet occupation of Afghanistan; and a decisive outflanking of the PRC. For these reasons, we need to review our current policy and prepare a structured agenda for the next twelve months. 181 u The State Department should take the lead in convening a. inter- agency group to recommend practical steps we may take in the next six months to improve relations with India and Pakistan. The following issues should be addressed: 101 is Economic. We should review our international economic policy to see if we can make practical recommendations to be more supportive, particularly toward some of the proposals made by India. 1still 3 OADR 5.9