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dated July 19, 1954: U.S. aid to India

The U.S. Senate Foreign Relations Committee has stated that it would be "self-defeating" for the United States to "attempt to use economic assistance as a lever to force India to adopt an active pro-American foreign policy. Nothing could be better calculated to force India in the opposite direction," the Committee said in its 115-page report on the Mutual Security Act of 1954. A part of the report dealing with the U.S. aid programme to India was released by the USIS in New Delhi on July 17. In the Committee's "considered judgment" it was in the national interest of the U.S. to "continue assistance to India in the amount and of the type contemplated by the Foreign Aid Bill." The Bill, now before the U.S. Congress, provides for 95.5 million dollars aid to India, made up of 76 million dollars in development assistance and 19.5 million dollars in technical co-operation. The Committee mentioned the following "basic facts" in support of its judgment: (1) It is more in the U.S. interest for India to be neutral than to be Communist or actively pro-Soviet. (2) The differences between India and the U. S. are of a character on which nations can differ and still maintain friendly relations.

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