Foreign Relations of the United States, 1969–1976, Volume E–7, Documents on South Asia, 1969–1972
Document 306
306. Telegram 8648 From the
Embassy in Pakistan
to the
Department of State
1
2
Islamabad
,
October 23, 1972, 1053Z
Sub:
Pres.
Bhutto
Pleads Again for 400,000 Tons of PL–480 Wheat
1.
Summary: Pres
Bhutto
has pleaded for positive response to pending
GOP
request for 400,000 tons of wheat under Title I. He cites variety of political steps he is taking to help get Pakistan on its feet. He considers the additional wheat from
US
as essential to meet country’s requirements in coming months and to support his other efforts to assure stability. He is aware of exceptional supply and budgetary squeeze on PL–480 wheat in
US
, but appeals for most sympathetic consideration. Action requested: That we do our very best to meet
Pak
request for 400,000 tons, and that positive decision be conveyed soonest. End summary.
2.
Pres.
Bhutto
called me late Sunday night Oct 22 to express, once again, his sense of urgency in getting favorable reply on pending
GOP
request for additional

400,000 tons of wheat under Title I of
PL
480. Following is summary of points he made (details on some issues will be reported septels):
A.
Constitutional agreement hammered out unanimously in past week among leaders of all parliamentary parties (under
Bhutto
’s leadership) is great step forward. By and large, it means Pakistan’s most critical and immediate domestic political problem has been settled. Problem of northwest frontier and Baluchistan provinces (which are governed by parties insisting on substantial autonomy) has been solved, assuring integrity of country. Now country can get on with other basic issues that need to be tackled. (I told
Bhutto
I fully shared his view that agreement on constitutional principles is tremendous step forward, and congratulated him on his statesmanship and political acuity in working it out.)
B.
He is going ahead with other political measures to help get country on its feet. He noted specifically “strong steps” taken in Karachi (where govt has moved vigorously in recent days to end illegal strike that shut down most of Landhi industrial area).
C.
He is also moving to clean out his own (Pakistan Peoples) party. He had just accepted resignation from cabinet of Meraj Mohammad Khan (formerly Central Minister of State for Public Affairs and reputed communist, who has been criticizing govt for not following sufficiently radical policy). Meraj, President added, is now going around accusing
Bhutto
of selling out to the Americans”.
D.
He was doing his best to resolve his problems with India. He was very disappointed at the latest delay in completing delineation of the Kashmir line of control, which had been expected this weekend. He had just written to
PriMin
Gandhi
expressing dismay and a desire to see the delineation and force withdrawals completed as soon as possible.
E.
Pres.
Nixon
had promised Pakistan economic support. We had been generous and our help was greatly appreciated. Pakistan now badly needed extra support in the wheat it had requested.
F.
The additional wheat is essential to meet

requirements in the coming months. without it, Bhutto’s other efforts to bring stability to the country would be undercut.
3.
Bhutto
referred to current visit to Islamabad of
MacDonald
(AID/Asia) and said he hoped MacDonald had brought some good news on the wheat request. I said
MacDonald
and I had discussed the issue the previous day with the Finance Minister and had been discussing it in some detail only a few hours earlier with the Deputy Chairman of the Planning Commission. We had no doubt of Pakistan’s need for the wheat. Washington was aware of the extremely high importance that
Bhutto
attached to this request. There was every sympathy for Pakistan’s need. As I had told him before, I went on, the problem lay rather in the exceptional squeeze on our own wheat stocks as result of unforeseen purchases by the Soviet Union and other buyers, and related serious budgetary constraints. I said we had told the Finance Minister and the Planning Commission head that the

final decision on Pakistan’s request had not yet been made but that it seemed most unlikely we could provide the full 400,000 tons under
PL
480. It looked as though it would be necessary for Pakistan to go into the commerical market with its own funds to supplement what we might be able to supply under Title I.
Bhutto
responded that, as we knew, the
GOP
had already had to spend a large amount of foreign exchange to meet an unexpectedly large deficit in sugar. As he had previously told me, the govt had also taken action to conserve its limited exchange reserve in other ways like deferring payments (and delivery) on Mirage aircraft previously on order from France.
4.
Bhutto
then asked that I convey the urgency of this matter, and said he hoped
USG
would be considerate of difficult problems he is facing and of effort he is making. I reiterated that we were indeed aware of his problems and I was sure we would do as much as we could against the background of our own very serious supply and budgetary squeeze. I promised to get word

back to him as soon as possible.
5.
Comment: As I have reported before, no
Pak
economic request in recent years has been couched in such urgent terms as current appeal for additional 400,000 tons of wheat. We believe Pakistan has absolute requirement for this wheat to meet demand through govt fair-price outlets and thus avoid increase in price of this basic staple. I agree with
Bhutto
that Pakistan needs assurance of adequate wheat supply to backstop the political effort he is making to put country on its feet. Finally, a positive response to provide 400,000 tons will be understood by
Bhutto
as exceptional effort by highest levels of
USG
to help Pakistan.
6.
Action requested: I recommend that we do our very best to meet
Pak
request for 400,000 tons wheat under Title I. I discussed with
MacDonald
, before he left Islamabad today, my last night’s conversation with
Bhutto
, and
MacDonald
concurs in above recommendation. My country team concurs. I hope positive decision can be conveyed soonest.
Sober