PROGRESS REPORT ON NSC 5409 SOUTH ASIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R003000070013-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 19, 2016
• Document Release Date: December 22, 2005
• Sequence Number: 13
• Publication Date: July 28, 1954
• Content Type: REPORT

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:DATE July za-, 19
COPY NO.
OPERATIONS COORDINATING BOARD
Washington, D. Co
PROGRESS REPORT ON
NSC 5409 SOUTH ASIA
REFERENCE; NSC Action No. 3.052
.OCB FILE NO. 48
NSC review(s) completed.
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This document contains information affecting the national defense of the
United States, within the meaning of the espionage laws, Title i8, Sec-
tions 794 and 794, 11" .S.C., the transmission or revelations of which in
any manner to an unauthorized Person is prohibited by law.
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OPERATIONS COORDINATING BOARD
WASHINGTON 25, D. C,
September 27, 1954
MEMORANDUM FOR THE OPERATIONS COORDINATING BOARD
SUBJECT: Progress Report on NSC 5409 (South Asia)
The attached Operations Coordinating Board Progress Report
on NSC 5409, "United States Policy Toward South Asia", dated
July 28, 1954, was used by the National Security Council as a
basis for discussion in cozmection with Council consideration of
the "Review of U.S, Policy in the Far rastu(now NSC 5429/2) on
August 12 and August 18, 1954, Action Nos. 1204 and 1206 respec!-
tively
The previous draft of this report dated July 20, 1954 and
the note dated July 22, 1954 to holders of the report are obsolete
and may be destroyed in accordance with the security regulations
of your agency*
er B, Staats
Executive Officer
Attachments:
1? Memo to the Executive Secretary, NSC,
from the Executive Officer, OCB,
dated July 29, 1954#
Progress Report on NSC 5409
(South Asia) dated 7/28/54
OOB File No, 48
ZQ=
NSC review(s) completed.
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SE ' :
OPERATIONS COORDINATING. BOARD
Washington 25, D. C.
July 29, 1954
I E! RANDUfN FOR: Mr. James S. Lay,. Jr.
.
Executive Secretary
National Security Council
SUBJECT: Progress Report on NSC 5409 (South Asia)
REFERENCE: NSC Action No. 1052
On March 6, 1954 the President approved NSC 5409, "United
States Policy Toward South Asia," and designated the Operations
Coordinating Board as the coordinating agency.
Attached hereto is the first Progress Report on the
implementation of WSC 5409;, covering the period through
June 15, 1954. The Report was approved by the Operations
Coordinating Board on July 28, 1954.
/S/ George A. Morgan
Acting Executive Officer
Progress Report on NSC 5409,
dated 7/284.
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July 28, 1954
PROGRF,SS REPORT ON NSC 5409
IM BD STATES POLICY TOWARD SOUTH ASIA
(Policy approved by the President March 6, 1954)
A. STR~~RY OF MAJOR ACTIOrlS
In implementing the United States policy toward South Asia,
as contained in NSC 5409, the United States has:
(1) made active efforts to maintain cordial official and
personal relations with peoples and governments in the
area. Vice President Nixon's visit to South Asia was
particularly helpful;
(2) carried on a vigorous information program through the area:
(3) continued to try to be helpful in mitigating regional dis-
putes;
(4) made substantial progress in our economic and technical
assistance operations:
(a) Has provided Afghanistan 12,000 tons of wheat and
wheat flour for a threatened food shortage;
(b) On March 31, 1954, the U.S. made the last shipment to
Pakistan under the 700,000 ton wheat grant authorized.
last year to prevent a famine in Pakistan;
(5) reached general agreement with India regarding shipments
Bloc countries of Thorium Nitrate, a strategic commodity;
(6) encouraged Pakistan and Turkey to sign a cooperation agree-
ment, and the U.S. and Pakistan on May 19 signed a Mutual
Defense Assistance Agreement.
B. L'VALUA TION OF THE POLICIES IN THE LIGHT OF OPERATING EXPERIENC?'
These policies are considered to be timely, complete and appro-
priate. No changes are reccomended at this time.
C. J 1ERGINO PROBk1S AM FUTURE ACTIONS
Three problems of more than ordinary importance are emerging
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(1) the role of India in an Indochina settlement;
(2) the course of developments in Fast Bengal following the _r.-
position of Governor's Rule and the effect of those devel-
opments on all of Pakistan;
(3) Soviet activity in Afghanistan as related to the U.S. Mutt it
Defense Agreement with Pakistan.
1. India, because of its national consciousness, geographic
position, size and relative strength, together with certain atti-
tudes which it shares with the South and South East Asian coun.rier
arising from colonialism and religious and cultural affinities, ha
ambitions to take a position of leadership and strong influence in
the region. India fears that the fighting in Indochina, if cdn
might lead to a world war with the reinstitution of colonial power
supported by the U.S. On the other hand, India would be apprehensivf3
of a further consolidation of external communist power in Indochint.
These factors, together with India's policy of non-alignment and i-
desire not to offend communist China place India in a difficult but,
important position from Mich its own self interest may be expected
to lead it to take a parw' of increasing importance in the Indoohin&.
problem. India's possible participation in an Indochina solution is
under continuing study.
2. In the provincial elections in East Bengal this spring,
the party in control of the Central Government, the Muslim League,
was completely repudiated. The new Chief Minister of East Bengal
and his cabinet, drawn from the victors, the United Front, were cor
pletely ineffective. Riots broke out, hundreds of lives were lost,
and the Central Government was forced to remove the provincial oab:j.--
net and institute Governorva Rule. Under the new Governor, Iskande:
Mirza, complete order is now being maintained, but it is widely recsog-
nized that substantial economic improvements must be accomplished in
the near future if stability is to be maintained and democratic pro-
ceases restored. The situation is being closely watched, and on
eration is being given to possible means of being helpful.
3. Since February 19,E when the Pakistan.-Turkey cooperation ag Be-
ment was signed, there have been increasing signs of Soviet interest
in Afghanistan, manifested particularly in economic activity and plan-
ning. This development has been emphasized by Ambassador Ward sine
his recent return on leave. The problem is being given careful stwziy,
since it includes fundamental political and security issues.
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DETAILED DEVE_L.OPIfl NT OF MAJOR AC O
There have been no significant omissions or deficiencies in
implementation of NSC-5409. Significant substantive actions taken
in support of the policy are listed below. (Numbers shown below re-
fer to paragraph numbers in NSC-5409. Courses of action are quoted
Para. 15. "Give particular emphasis to the maintenance of oor--
dial official and personal relations in all areas of contact, and
where possible increase those areas of association."
.It is standard practice to maintain cordial official and persol
relations. Of especial importance have been the representational
activities of the Ambassadors and other key officers in the field,
entertainment of foreign officials in Washington and attendance by
our representatives at cultural functions, exhibitions and confer-
ences sponsored by the various South Asian governments. Recently
the Army sent Major General A. E. Trudeau, Assistant Chief of
Staff, G-2, and a small group to visit India and Pakistan to estab-
lish and renew contacts in those countries on a more personal basis.
On the occasion of a visit to India during the period by Vice Admir .t
Wright, (CINCNEDI) the U.S. Ambassador did not deem our relations
with India sufficiently friendly to warrant his asking clearance for
entry of the Flagship, (tSS PITTSBURGH). During the course of his
visit, Admiral Wright received only the bare minimum of the customar -
courtesies from the Indian officials he encountered.
Para. 16. "Vigorously pursue effective information and educa-
tion programs designed to broaden support for actions consistent
with U.S. policies and to diminish susceptibility to communist
appeals."
In India, a major effort has been made in recent months to im-
prove the information materials produced by USIA in India and to
focus activities more selectively upon opinion leaders. The canter-
of our publications has stressed collective security as the keynote
of U.S. foreign policy and as the motivating factor in the U.S. de-
cision to grant military aid to Pakistan. The economic, military and
moral strength of the U. S. is another theme which has been stressed
Special emphasis was given to the U.S. attitude towards colonialism
as set forth in Assistant Secretary Byroads's speech of October 31.
Increasing attention is being paid in our output to developments in
Southeast Asia, with the objective of making India aware of the threat
to her security of Red Chinese aggression in Indochina and of identi-
fying U.S. policy in this area with her own national self interest.,
The American Reporter, a biweekly USIA newspaper in India, rea3hee
350,000 of the most important leaders in education, business, the press)
members of parliament and of the provincial legislatures. Importaz1
official texts are produced in pamphlet form and mailed to a highly
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selective list of opinion leaders including newspaper editors,. New
Indianrlanguage editions of American books include such titles as
Stowe! s "Conquest by Terror," Kirk's "Postmark Z-ioscow," Koestle 's
"Dankness at Noon," and Chase's "Goodly Heritage."
USIA is opening new reading rooms in four university cities;.
Reading. rooms will be opened in six additional cities by Jann4m
1,j. 1955*
The films program reaches small groups of key officials rather
than mass audiences and has been integrated with pamphlet and book
distribution. Recent local productions made in cooperation with the
Technical Assistance Mission and the Goverment of India, show. C. S.
contribtxtioiis in, support of India's Five Year Plan.
USIA plans to initiate August 1, on a trial basic, short wave news-
casts from New York to supplement the present tape-recorded programs
in Hiram,' Urdu, Bengali and 'ramil, ti4hich are transmitted from Colombo.
The most recent count of 5,Q00 letters a month received from India by
VOA indicates an increasing listenership?in this country.
The college contact program continued through this academic year.
Nine American college presidents or professors, two youth leaders and
one newspaper man sent under the exchange of persona program, partici-
pated in a vigorous program of lectures and informal diacussionc,
Pro--!American sentiment in Pakistan facilitated relations with
the press and resulted in high placement of information materials.
An effective motion picture program has reached college studenta.,
military personnel, and government.officials;., Since the signing of
th6 `Military Aid Agreement, some Pakistanis have begun to question
w1iether 'the' price they have paid for military aid may not be tD a high,
In addition, their expectations of the amount of aid that will be re-
-co ved have'far exceeded that contemplated by the United States. UUfi--,
therefore, is faced with the difficult task of assuring them that t1 e: x
decision to stand up and be counted on the side of the West wiL be
well rewarded and, at the same time, of presenting a realistic piettn
of-the amount of aid that can be expected.
In Eaat.Pakistan, the communists and the opposition party both
hava stirred up some anti-American feeling with charges that the, go''rn`
ment has sold Pakistanis sovereignty for the promise of American air
and by implicating the U. S., with the imposition of Governor's rule
in East ' Ber al. Strenuous efforts are under, way, to expand the l imi 'd
capabilities of USIS in East Pakistan.
In Ceylon the normal information program has been supplemented in
the, last two months by the local production. of three special pamphl3'0..
One.,. unattri'buted and strongly anti-ccmnmunist, was printed and distribu-
ted by. the Kelani Valley Buddhist Brotherhood;, another entitled,
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'CChristianity and Communism was also unattributed; and the third,
bearing the USIA Seal, stressed the role of an American in the revival
of Buddhism in Ceylon. This last one has been attacked vigorously
the communist press.
During Fiscal Year 1954, the following grants were awarded undt_~
the Department of State's Educational Exchange Program to the count .s
in South Asia..
India
167 grants of which 117 were to Indians and 50 to .Americans., Ar;cng
the .50 Amaritcan8 were 12 American specialists lecturing under the csuU.ege
contact program throughout India. Among the Indians brought to the
United States were 15 Indian leaders,
Pa 'kigkn
`93.grants of which 74 were to Pakistanis and.19,to.Amerieana.
Among the American grants were five to American specialists who lect *ed
and held seminars and discussion groups in both East.and West Faki.st L.
Among the grants to Pakistanis were ten leader grants.
e# o
36 grants were awarded during Fiscal Year 1954, 28 of which went
to Ceylonese and 8 to Americans.
Afghanistan
Four-grants were awarded-three to Afghanistan and one to an
American specialist.
Npa1
Two grants were awarded to Nepalese in FY 1954.
India, Pakistan and Ceylon have Fulbright programs, and the grants
to American and foreign students, professors, and teachers under theso
Fulbright programs were awarded during Fiscal Year 1954. But the
people to whom the grants were awarded will come between July and Sep-
tember of Calendar 1954.
Para, 17. "Encourage greater participation in all UN activities
by South Asian countries which are members of the UN.'*
We presently plan to support Zafrulla Khan in the special elec-
tion to fill the vacancy in the International Court of Justice left
by the death of the Indian representative.
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aja 18. "Assist through the UN and by other feasible means in
the settlement of disputes between the various countries."
We have continued'to watch developments on the Kashmir issue
closely and are willing to be as helpful as may be possible. How-
ever,, prospects do not look good. We also are following the World
Bank talks 4th India and Pakistan on distribution of the Indus
waters.
Operations under this paragraph will be reported directly to the
National Security Council.
Para. 0. "Assist the governments of the area to develop their
natural resources, particularly agricultural, and their basic indus-
trial potential, including the provision of technical assistance anc
limited economic aid."
The FOA programs for all countries in South Asia are devoted
primarily to assistance in the fields of agriculture and natural
resources. This is particularly true in Afghanistan and Nepal where-
we are carrying out only technical cooperation programs. In the case
of India, and to a lesser extent Pakistan, a certain amount of our
assistance, both in the technical and development assistance fields,
is devoted to development of the industrial potential but primary
emphasis remains on agriculture and natural resources. For fiscal
year 1955 a total of $26.7 million (~6.7 million for technical coopera-
tion and ~20 million for development assistance) is being requested
for Pakistan. A total of 4104.5 million (x19.5 million for technical
cooperation and $85 million for development assistance) is being re-
quested for India.
The Export-Import Bank, extended a loan of ;;18.5 million to the
Government of Afghanistan in May for use in further development of
the Helmand Valley region a.nd'fo'r some road maintenance work.
PM. 21. "Foster South Asian conditions and governmental po`
cies favorable to the investment of indigenous and foreign private
capital in such economic development of the area."
We are doing everything possible with FOA programs to foster i a-
ditions and policies favorable to private capital-investment. In
the case of India, we are prepared to make available up to 15 mil-
lion worth of rupee counterpart towards the initial capitalization
of a private industrial development corpora:tion.which will derive
the remainder of its capital from private sources and from the
World. Bank. It is anticipated'that this corporation will be set
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up and operating within a very short time, but we would be ready to
encourage a similar enterprise in that country. Apart from this, wt
are using every available means to ensure that private capital inve't.-
meat is encouraged.
Industry and investment, advisers are presently on the staffs
of the FOA missions in India and Pakistan. Steps are being taken
to place increased emphasis on this aspect of our programs in both
of these countries.
Para, 22. "Be prepared to extend emergency aid as circumstance
Justify on a case-to-case basis to alleviate unexpected food shortas
or the effects of natural disasters."
A short time ago we signed an agreement with Afghanistan under
which the U. S. is providing 12,000 tons of wheat and wheat Lcur to
meet a threatened food shortage in Afghanistan. The aid is being
sent under Section 550 of the Mutual Security Act of 1951, as amend-1,
which authorizes the use of MSA funds to finance the purchase of sur-
plus agricultural commodities in the United States.
On April 27 the Pakistan Government announced that the food
situation in Pakistan had improved to such an extent that it would
not require the balance (amounting, to about 89,000 tons) of the. whet
grant of 700,,000 tons which was authorized for Pakistan by the U. S.
Government last year to meet threatened famine. It is estimated by
the Pakistan Government that the gift of wheat saved several million
people from starvation.
. "Continue diplomatic, psychological and propaganda
=a. 2
efforts to discourage and where possible prevent shipment of strate-
gic materials to the communist bloc."
We have carried on active efforts to discourage and where pos-
sible prevent shipment of strategic materials to the communist bloc.
As the result of some of these efforts, we have reached gener&1. agre=i-
ment with India (although the agreement has not yet been ratified 11,
India) which should assure that Thorium Nitrate will not be shipper:
by India to communist countries.
Para. 2 . "Encourage Judiciously and, as appropriate, provide
guidance for such action by South Asian governments in the general
area of land reform as wilt contribute to increased agricultural prrk
duction and internal stability."
There are no land reform specialists on the staffs of the FOA
missions in South Asian countries, but FOA has sponsored certain
short-term consultants in this field in India. Their report, written
after a ninety-day study of the problem some two years ago, reccum>-ded
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certain measures in the field of land reform which have been cordiea..Ly
received by the Indian Government. Due to the political sensitivil:As
of this area, it is felt that large-scale, or continuing land reforx
work on the part of FOA, is not possible at this time.
Para. 26. "As politically feasible, seek to obtain (a) the use
of military and strategic facilities in South Asia, including c:cnu-vi-
cations, transit and base rights and (b) the right to operate forcer,
in the area upon the threat of and during general hostilities."
An itmnediate favorable result of the U.S. decision to extend i. 1i-
tary assistance to Pakistan may have been the latter's permission
for the U.S. aircraft engaged in the recent airlift to Indochina to
refuel in Pakistan.
The Air Force (MATS) has air transit agreement with both Irri3=
and Pakistan.
On the negative side, the following items are noted:
a;. India requested the U.N. to withdraw U,S. Military Cbserv.-cs
on the Kashmir Ccamnission on the ground that they were not neutral.
b. In conformity with.its long established policy India refused
permission for the above mentioned aircraft to utilize air facilities
in, or to overfly, India,
at, In Ceylon the U.S. Ambassador determined that friendly ro,
lations had not developed sufficiently during the period for him to
request permission to establish desired U.%:. Army, Navy, and Air
Force communications facilities in that country,
arc. "Encourage participation of the nations of South Asia
in regional defense arrangements coordinated with those in adjaoent
areas."
Pakistan's cooperation agreement with Turkey flowed from U.S.
encouragement of regional defense arrangements.
Para,, 28. "Provide to selected South Asian nations limited mili-
tary aid, reimbursable or grant, contributing to the maintenance of
internal security and the defense of the area."
The U.S. has agreements with India and Pakistan for the pro-
vision for reimbursable military aid. Grant military aid to Fakist n
will be extended in the near future under the recently signed agreo
ment. Following Pakistan's signature of a cooperation pact with
Turkey we signed, on May 19, a Mutual Defense Assistance Agreement
with Pakistan under the terms of which we plan to furnish military
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grant assistance to Pakistan. A survey mission headed by Brigadier
General Harry F. Meyers visited Pakistan to decide on its most urgent
needs. General Meyers has made a report to the Gecretary of the ArmTy
in which he recommends that ;29.5 million be apportioned for P vkistsiL
from funds currently available. If no unforeseen difficulties ariee,,
it is expected that the nucleus of a MAAG will. be in Karachi in mid-
August with a token shipment arriving shortly thereafter.
Rara, 22 . "Utilize the above political, economic and military
courses of action whenever necessary and practicable to encourage
cooperation with the United States in attaining its objectives in
the area."
The Battle Act implications of Indian exports to communis+J bloc
countries of Thorium Nitrate upon U. economic aid to India have
been of considerable force in bringing India toward an agreement
with regard to disposal of its Thorium Nitrate production and other
materials such as strategic grades of mica,
Our Ambassador to Afghanistan recently notified us of his in-
tention to bring to the attention of the GOA the probable conse-
quences under the Battle Act of shipping beryl to a communist
country.
Para. -22. "Continue and increase close consultation with the
Government of India on matters of policy and encourage it to consujt
more frankly with us, without permitting Indian opposition to deter
us from taking actions which are clearly in the U.S. interest."
We have followed a policy of close consultation with the Gover'l-
ment of India. Ambassador Allen has ready access to Nehru and has
explained U.S. policy to him on a number of issues, including X1.5.
military assistance to Pakistan, U.S. aid to the French in Indochi i ,
non-recognition by the U.S. of communist China, etc. Similarly, the
Indian Ambassador in Washington has been briefed from time to time
by State Department officers, including the Secretary.
Para "Make clear to India that by providing military
assistance to Pakistan, the U.S. is not seeking to make Pakistan the
dominant state of South Asia. 4
The purpose of U.S. military assistance to Pakistan was made
quite clear to the Indian Government by President Eisenhower's letter
to Prime Minister Nehru, by Ambassador Allen in conversations .rith
Nehru and other Indian officials in Delhi, and by the Secretary of
State in talks with Ambassador Mehta in Washington. It was fully
explained that what was desired was not dominance of South Asia by
Pakistan, but an effective defense establishment in Pakistan as a
protection against aggression.
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USIA has continued to make every effort in its information out-
put in India to make our intentions understood.
P ra 6. "Support the continuation in power in India of ele-
ments which are non-oommwaist and friendly to the United States,
recognizing that at present the incumbent Congress Party comes
closest to fulfiliiang these specifications,"
Ambassador Allen recently visited the U.S. and made very str,:ig
appeals before Congressional committees, in official bodies end before
public meetings in support of U. 5. economic assistance to India, We
regard such assistance as of great importance in maintaining friendly
elements in power.
Para, . "Recognize that for the present India's policy of
anon :involvement' will continue; and make use of India as a mediator
when it is in U. S, interests."
The possibilities and limitations of India's usefulness as a
mediator were fully displayed by the role which India played as
Chairman of the Neutral Nations Repatriation Commission in Kc;rea.
Paa. "Continue to make clear to India that the Kashmir
issue'should be settled by mutual agreement between India and Pakioa--
tan, that the United States is willing to assist through the UN arc;
by other means, but that the United States has no ulterior motives
or hidden objectives which would be fostered by settlement in favcr
of either country."
The U.S, has continued to make clear its view that the iashr
issue should be settled by mutual agreement between India and Paki-
tan, Following the Indian protest against the presence of U.S.
members in the UN Observer Group for Kashmir, our Ambassador infer ed
the Government of India that we had explained to the Secretary Ger:
eral of the UN that while the U. S. Government recognized hia re i 'fl
eibility to make the decision, the U. S. has no interest in maint ---.r,
ing American observers in Kashmir providing the effectiveness; of R:lie
present observer system in Kashmir remains unimpaired. We told the
Secretary General in confidence that we would like to see the U.
members of the Observer Group withdrawn within a few months. Ow-
most recent information from the office of the Secretary General 3
that he considers six United Ctates observers the minimum ne.essto
to maintain the morale of the observer corps in Kashmir and that `pis
present inclination is to insist that the Indians permit replacemc=at
of that number of U. S. officers whose assignments expire after July 1,
bya. 43. "Seek through official statements and eommunicat_+7as
media e l recognition by the Government and people of India, of
(a) the communist threat to India, (b) U. S. support for India'sn-
dependence and (c) the contribution which the United States is making
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to India, through_.ecmz.omic._ and technical aid,,
See progress under para. 16.
Para. OContinue and increase close consultation with the
Government of Pakistan on matters of policy and encourage it to cmi-
sult more frankly with us."
In connection with the Colombo Conference, the Secretary of
State invited the Ambassadors of Pakistan and Ceylon to call, ex-
plained some (5f-the difficulties he anticipated at Geneva, and ex-
pressed the hope that developments at the Colombo Conference ti?ould
not make his course more difficult at Geneva. The Ambassador of
India also was invited in for a more general briefing. Reports frma
Colombo indicated that the attitudes of the Prime Ministers of both
Pakistan and Ceylon were very helpful to us.
Para 47. "Seek greater participation of Pakistan in a ccmomon
front against communism. 1'
Pakistan's decisions to sign a cooperation agreement with Tur- v
and a Mutual Defense Assistance Agreement with the U.S. were eviden.13
of its increased participation in a common front against communism-
Paja. 48. "Make clear to Pakistan that our objective in the
Kashmir issue is a solution acceptable to both India and Pakistan
and that in this issue we are not prepared to support either coun-
try against the otter."
Our attitude regarding withdrawal of the U. S. members of the
UN Observer Group in Kashmir should serve to reinforce our policy
of impartiality between India and Pakistan in the Kashmir issue.
Para . *Encourage Pakistan's participation in any defense
association which is judged to serve the interests of the United
States. Priority should be given to the establishment of such an
arrangement between Pakistan and Turkey."
Pakistan's cooperation agreement with Turkey, signed on Febru-
ary 19, is a significant step toward participation in a defense
association which will serve U. S. interests.
Para "Seek to insure that in the event of general war
Pakistan will make available manpower, resources and strategic fa-
cilities for mutual defense efforts with the West."
The recent agreement between the U. S. and Pakistan with respc"t
to defense assistance is an important move in bringing about Pakis*,''s
complete cooperation in the event of a general. war.
S C. ET
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 Approved For Release 2006/03/17: CIA-RDP80R01731 R00300007001i&ZT
pjU&,. IL "Support the continuance of the (Afghan) government
in its present form in the absence of conditions under which a more
representative government could come into existence without the
serious threat of chaos or of the advent of power of a group subser-
vient to the Soviet Union."
We are supporting the continuance of the present Afghan Govern-
ment through technical assistance and Export-Import Bank loans.
The Export-Import Bank recently has agreed to extend another develop-
ment loan in the amount of 1l8.5 million to Afghanistan.
Para._53. "Discourage Afghanistan's Pushtoonistan claims."
When Vice President Nixon was in Kabul he made it quite clear
that our policy of discouraging Afghanistan's Pushtoonistan claims
had the support of the highest officials of our Government.
Para. "For the present refrain from encouraging Afghan ex-
pectations that the United States will extend military assistance."
We recently made it clear to the Afghan Government that we couim
not presently encourage any Afghan expectations of U. S. military
assistance.
Para,57. "Endeavor to maintain the friendly relationship
between the United States and Ceylon which continues despite the
strains imposed by Ceylon's trade in rubber with Communist China."
Vice President Nixon's visit to Ceylon was a great help in
strengthening friendly relations between Ceylon. The recent decision
to have Prime Minister Sir John Kotelawala visit the U. S. should
further improve U. S.-Ceylon relations.
-12- SECEET
Approved For Release 2006/03/17 : CIA-RDP80R01731 R003000070013-2
 ONCLICSSIFIED Approved For Release 2006/Q ll KTFWP80R01731R003000070013-2
ROU
INSTRUCTIONS: Officer designations should b
and each comment numbered to correspond
before further routing. This Routing and R
TING AND RECORD SHEET
e use] in the "TO" column. Under each comment a line air-Lid be e.awn
with the number in the "TO" column. Each officer should initial (checi (nark
ecord Sheet should be returned to Registry.
FROM:
TO
ROOM
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ATE
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TELEPHONE
NO.
DATE
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NO.
RECD
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INITIALS
TELEPHONE
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6.
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10.
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