Aid To Pakistan, India Resumed

Press, Volume CVI, Issue 31088, 17 June 1966, Page 9

Aid To Pakistan, India Resumed

(N.Z.P.A.-Reuter— Copyright) WASHINGTON, June 16. The United States has decided to resume full economic aid to India and Pakistan now that peace in Kashmir has been restored, says the State Department. American aid to both countries was frozen when the Kashmir conflict broke out last year. Last February, the United States partially restored some ol the economic aid by extending 150 million dollars to India and 50 million dollars to Pakistan. The State Department press officer, Mr R. J. McCloskey, gave no figures for the full resumption, but he said it would be comparable to amounts the two countries had received in the past. For India, this amounted to 300 million dollars in the 1964-65 financial year. For Pakistan, it was 182 million dollars. Before the Indian-Pakistani war, the United States had pledged 435 million dollars as its contribution to a development consortium for India. “There has been a return to the peace which was so tragically interrupted by last autumn’s conflict,” said the State Department.

“The Governments of India and Pakistan are again concentrating on the urgent tasks of national development. “Drawing on experience and the results of past efforts, both countries have economic plans which show high promise.” The United States wished to do its share, as a member of consortiums led by the World Bank, in supporting development and mutual cooperation in Asia. “Within this framework, steps now are in process towards the orderly and early resumption of United States aid to both India and Pakistan, through use of funds already appropriated,” said the State Department. “Further aid is contemplated, subject to Congressional action.”