EVENT NO. 1 - AIRPORT ARRIVAL CEREMONY AT IAHORE, PAKISTAN

FRIDAY, AUGUST 1, 1969

Motorcade (continued)

18. Two Wire Service

19. Spare Car

20. Deputy Chief Martial Law Administrator Car - Air Marshal Nur Khan and Begum

21. Deputy Chief Martial Law Administrator Car - Vice Admiral Amsaf

22. Deputy Chief Martial Law Administrator Car - Lt. Gen. Hamid

23. Martial Law Administrator Zone A - Lt. Gen. Attigur Rehman

24. Deputy Chairman Planning Commission - M. M. Ahmad

25. P.S.O. to the President - Gen. Peerzada

26. Two Wire Service Cars

27. Car No. 3 - Dr. Kissinger, Assistant Secretary Sisco, S. S. Yusuf

28. Car No. 4 - Ambassador Mosbacher, Ambassador Agha Hilaly

29. Car No. 5 - Mrs. Mosbacher, Begum S.M. Yusuf, Begum Anwar Khan

30. Protocol Car

31. Staff Car A - Haldeman, Whitaker, Hughes

32. Staff Car B - Coffey, Ziegler

33. Staff Car C - Woods, Keogh, Price

34. Press Pool Bus

35. Press Bus 1

36. Press Bus 2

37. Press Bus 3

38. Press Bus 4

Lahore Event 1 - 4
Revised 7/30/69

EVENT NO. 2 - COURTESY CALL ON PRESIDENT YAHYA

FRIDAY, AUGUST 1, 1969

STAFF INSTRUCTIONS

12:20 PM Upon arrival at the
Governor's House, those
persons staying there will
be escorted to their rooms.
(see room assignment tab)

Staff members who have
motorcaded to Governor's
House but are staying at
the Hotel are to remain in
the motorcade for the trip
to the Hotel.

12:20 PM The President arrives at the Governor's House. He is accompanied by President Yahya.

President and Mrs. Nixon are welcomed to the Governor's
House by the Chief of Protocol, Mr. Anwar Khan and Lt. Gen.
Attiqur Rehman, Deputy Martial Law Administrator, Zone A.
The Chief of Protocol then escorts President and Mrs. Nixon
to their suites.

STAFF TIME: 40 minutes

1:00 PM President Nixon will be escorted by the Chief of Protocol to the Gray Room where he will pay a courtesy call on President Yahya. President Nixon and President Yahya will be alone.

1:10 PM At the conclusion of the courtesy call, President Nixon will be escorted back to his suite by the Chief of Protocol, Mr. Khan.

STAFF TIME: 50 minutes

Lahore Event 2 - 1

EVENT NO. 3 - PRIVATE AND CONCURRENT MEETINGS

FRIDAY, AUGUST 1, 1969

4:00 PM (approx) At the conclusion of the talks, when the Presidents mutually agree to conclude, President Nixon will be escorted by the Chief of Protocol to his suite.

STAFF TIME: 1 hour 30 minutes

Lahore Event 3 - 2

EVENT NO. 4 - PERFORMANCE OF MILITARY BAGPIPES AND KHATTAK DANCERS

FRIDAY, AUGUST 1, 1969

STAFF INSTRUCTIONS

5:10 PM Guests who are on the evening dinner list are invited for special entertainment at the Governor's House. The President will attend. It is from 5:30 to 6:15. After the entertainment, guests will have the opportunity to return to their rooms at the Governor's House or the hotel. Guests should be back to the Governor's House by 7:45 pm. Cars will be available at the hotel to transport staff members. Dress for the dinner is dark business suit and long or short dresses for ladies.

GUESTS FOR ENTERTAINMENT AND DINNER

THE PRESIDENT

MRS. NIXON
Ambassador Emil Mosbacher
Mrs. Emil Mosbacher
Dr. Henry A. Kissinger
Mr. H. R. Haldeman
Mr. James Keogh
Mr. Ronald Ziegler
Colonel James D. Hughes
Assistant Secretary Joseph Sisco
Assistant Secretary Martin J. Hillenbrand
Miss Rose Mary Woods
Mr. Raymond Price
Mr. Christopher Van Hollen
Mr. Harold Saunders
Dr. Walter Tkach
Mr. Charles Stuart
Mr. Richard Howard

Plus 3 American press

Plus 4 Senior Embassy officers and their wives

5:30 PM President and Mrs. Nixon are escorted by the Chief of Protocol from their suite to the front lawn for a performance of military bagpipes and Khattak dancers.

Lahore Event 4 - 1
(Revised 7/30/69)

FRIDAY, AUGUST 1, 1969

Entertainment Governor's House (1730 - 1800) outside on lawn and contingent upon no rain. Entertainment comprised of sixty marching, military, bagpipers and forty Khattak Dancers in two groups. At 1730 Presidents' exit Governor's House heralded by seven trumpeters. After seating, bagpipers play and march past, turn and march past again for exit. Ten minutes total. 1740 Khattak Dancers perform native sword dance directly in front VIP stand. 1750 second group Khattak Dancers perform rifle dance, again for ten minutes. All performers in native costume and provide own native music.

American VIP seating at entertainment is President and Mrs. Nixon, Ambassador and Mrs. Mosbacher, Dr. Henry Kissinger. All others seated non-preferentially.

The entire press corps will attend the entertainment.

Lahore Event 4 - 2
(Revised 7/30/69)

EVENT NO. 5 - CIVILIAN DECORATION PRESENTATION TO PRESIDENT NIXON

FRIDAY, AUGUST 1, 1969

6:15 PM Following the performance, the Chief of Protocol Anwar Khan will escort President and Mrs. Nixon, President Yahya and Begum Ahsan to the Grey Room for the presentation to President Nixon of the Nishan I - Pakistan's highest civilian decoration for leaders of very friendly nations. (Decoration consists of riband over right shoulder and under left arm, medal pinned over right breast pocket and parchment inscribed citation.) Other recipients have been:

President Eisenhower

Shah of Iran

King of Saudi Arabia

President of Turkey

President de Gaulle

President Yahya will read a citation and President Nixon responds with appropriate thanks.

Press Pool coverage.

6:30 PM Ceremony ends.

Chief of Protocol will escort President and Mrs. Nixon back to their suites.

STAFF TIME: 1 hour 30 minutes

Lahore Event 5 - 1
(Revised 7/30/69)

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EVENT NO. 6 - DINNER

FRIDAY, AUGUST 1, 1969

8:00 PM Chief of Protocol Anwar Khan will escort President and Mrs. Nixon to the Gray Room where President Yahya will greet them. President Yahya will be accompanied by Begum Ahsan and possibly one or two other ranking Pakistani officials.

Drinks will be served.

(Dress: Business suit for President and long dress for Mrs. Nixon if she desires, although short dress is acceptable.)

A reception for the Pakistani and Americans invited to the dinner will also begin at 8:00 PM.

8:15 PM The Chief of Protocol will escort President and Mrs. Nixon and President Yahya to the main reception room. Military aides throughout the reception room will begin presenting a few guests at a time. There will be no receiving line as such.

President Nixon and Mrs. Nixon, President Yahya and Begum Ahsan will simply remain in the center of the reception room area. Refreshments will be served to the guests after they have been presented to the President.

8:45 PM The Chief of Protocol will escort President and Mrs. Nixon, President Yahya and Begum Ahsan from the reception area to the Banquet Hall. This is a separate entrance from the one used by the rest of the guests. When the Presidents, Mrs. Nixon and Begum Ahsan enter the room, all other guests will have been seated or at least be in the room.

American and Pakistani press pool coverage.

When the Presidents, Mrs. Nixon and Begum Ahsan enter the room, they remain standing at the top of the stairway for playing of the American and Pakistan National Anthems. Then they are escorted to their seats.

8:55 PM Dinner begins with music supplied by the Police Band.

Lahore Event 6 - 1

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EVENT NO. 7 - DEPARTURE CEREMONY

SATURDAY, AUGUST 2, 1969

STAFF INSTRUCTIONS

6:00 AM - Baggage call at
Governor's House and the hotel.

7:55 AM - Staff members with
Embassy-assigned cars should
take them to the airport. A
Staff Bus will depart the front
of the hotel at 7:55 AM.

8:15 AM - Staff arrives airport and stands at back ramp of Air Force One to watch Departure Ceremony.

NOTE: Staff coming from
Governor's House should be in
the motorcade at Governor's
House at 8:05 AM

8:15 AM President and Mrs. Nixon and President Yahya and Begum Ahsan depart Governor's House for Lahore Airport. Motorcade listing follows:

1. Pilot Car - Howard/Chapin/USSS

2. USSS

3. President/Head of State

4. Follow-up Car

5. Mrs. Nixon/Begum Ahsan

6. Security Car - Dr. Tkach

7. Staff Car #A - Mr. Haldeman, Col. Hughes and Mr. Whitaker

8. Staff Car #B - Mr. Ziegler and Lt. Col. Coffey

9. Wire Service Car

9a. Wire Service Car

10. VIP Car #A - Dr. Kissinger, others

11. Press Pool Bus

12. Staff Bus

Lahore Event 7 - 1

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MRS. NIXON'S SCHEDULE - LAHORE

SATURDAY, AUGUST 1, 1969

<table><tr><td>2:20 p.m.</td><td>Depart Governor's house.</td></tr><tr><td>2:30 p.m.</td><td>Arrive West Pakistan Society for Rehabilitation of the Disabled. Welcome by Begum Khudeja G. A. Kahn, President and Dr. Manzoor Ahmed Khan, Director of Projects.</td></tr><tr><td>2:31 p.m.</td><td>Proceed to open tent where Staff members and handicapped children will be assembled.</td></tr><tr><td>2:32 p.m.</td><td>Background remarks on Society's history, scope and purpose, by Begum K.G.A. Khan.</td></tr><tr><td>2:37 p.m.</td><td>Remarks by Mrs. Nixon.</td></tr><tr><td>2:38 p.m.</td><td>Visit to children's classroom simulated under tent. Mrs. Nixon will meet children, observe classroom activities and examine locally made prosthetic and orthopedic devices used by society in treatment of disabled persons.</td></tr><tr><td>2:52 p.m.</td><td>Visit physiotherapy and occupational therapy rooms on ground floor of main building.</td></tr><tr><td>3:07 p.m.</td><td>Proceed to front lawn area where children will be playing on playground equipment specially designed for the handicapped. Mrs. Nixon will have opportunity to talk with children, teachers and/or society officials, as desired.</td></tr><tr><td>3:13 p.m.</td><td>Thank you by Mrs. Nixon.</td></tr><tr><td>3:20 p.m.</td><td>Departure.</td></tr><tr><td>3:30 p.m.</td><td>Arrive APWA, welcome by Begun Zeenat Fida Hassan, National Chairman. If absent, welcome will be by Begun K. Anwar Ali, President of West Pakistan APWA. Introduction to few senior members of APWA Executive Committee.</td></tr><tr><td>3:35 p.m.</td><td>Background remarks on history, scope, and purpose of APWA by Begun Z. Fida Hassan.</td></tr><tr><td>3:40 p.m.</td><td>Response by Mrs. Nixon.</td></tr><tr><td>3:45 p.m.</td><td>Visit to typical APWA primary school class. Mrs. Nixon will meet children, examine art work, etc., children will perform brief Pakistani folk dance.</td></tr></table>

Lahore

M2-1

DEPARTMENT OF STATE

JULY 1969

# ISLAMIC REPUBLIC OF PAKISTAN
## BACKGROUND NOTES

Population: 130 million (1969 est.)

Capital of the Central Government: Islamabad

Capital of West Pakistan: Lahore

Capital of East Pakistan: Dacca

Pakistan is a geographically divided country with a total area of 365,529 square miles—roughly equivalent to the combined areas of Texas and Colorado. The two sections of Pakistan are divided by the breadth of India—a distance of 1,000 air miles and about 3,000 miles by sea—and differ considerably in economy, terrain, climate, size, and people.

West Pakistan (310,403 square miles) extends from its southern coastline on the Arabian Sea a thousand miles northward across the Thar Desert and eastern plains to the Toba and Rakar Mountain ranges, which parallel the northwestern, northern, and northeastern frontiers with elevations up to 11,000 feet. It is bounded by Iran on the west, Afghanistan on the northeast and north, the disputed state of Jammu and Kashmir on the northeast, and India on the east. Flowing from the north to the Arabian Sea are the Indus River and its tributaries—the Jhelum, Chenab, Sutlej, and Ravi Rivers—which form the fertile and intensely cultivated Indus Valley extending from the central plains to the sea. West Pakistan is dry and hot near the coast but cool in the northeastern uplands. Average annual rainfall is less than 10 inches, and temperatures range from 30°F. in winter to 120°F. in summer.

East Pakistan (55,126 square miles) faces the Bay of Bengal and, except for a small strip on the southeast adjoining Burma, is bounded on all remaining sides by India. It is almost entirely an alluvial plain formed by the many branches and tributaries of the Ganges and Brahmaputra Rivers. With the exception of the Chittagong hill tracts in the southeast, the area basically is flat. East Pakistan receives one of the highest annual rainfalls in the world, averaging 85 inches throughout the province and a maximum of about 250 inches in the northeast. Temperature averages 84°F. year around.

Pakistan's flag is comprised of a green field, with a white vertical stripe down the left side and a white crescent and star on the green field. The green field and star and crescent honor Islam; white represents the non-Muslim minorities.

## THE PEOPLE

West Pakistan's population is approximately 60 million, 46 percent of the national total. This gives it a population density of 196 per square mile. The majority of the people are located around Karachi (about 3 million), in the Indus Valley, and along an arc formed by Lahore, Rawalpindi, and Peshawar.

East Pakistan's population of 70 million, 54 percent of the nation's total, is spread evenly throughout the province. Density is more than 1,269 persons per square mile, one of the highest in the world.

Urdu and Bengali are designated as the official languages, but English is widely spoken and is an accepted language in government. Punjabi, Pushtu, Sindhi, and Baluchi are regional languages spoken in the West. About 88 percent of the Pakistanis are Muslim. The only minority group is Hindu (about 14 percent of the population of East Pakistan). Literacy is estimated at 16 percent.

## HISTORY

The forces which generated the concept of Pakistan as an independent nation for the large Muslim population of the Indian subcontinent stem directly from developments in British India in the last half century. Indirectly, however, they go back hundreds of years.

Muslim sailors reached the coast of Sind early in the seventh century during the lifetime of the Prophet Mohammed, and Muslims made a temporary conquest of Sind early in the eighth century. Between the 11th and 18th centuries successive Afghan and Turkish invaders gradually spread their authority across most of northern India. During this long period of Muslim rule large numbers of Indians were converted to Islam. The influence of Islam reached as far east as Bengal but never penetrated deeply into south India, which remained predominantly Hindu.

By the last half of the 18th century Great Britain gradually began to assume control of India. After a century of British rule, Muslim and Hindu leaders began to agitate for an effective voice in Indian affairs. The Indian National Congress, organized in 1885, was the first spokesman in petitioning Great Britain for a greater degree of home rule, but it included only a few Muslims.

To present their position more effectively, a number of Muslim leaders formed the All India Muslim League in 1906 and in 1913 formally

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adopted the goal already accepted by leaders of the National Congress-self-government for India within the framework of the British Empire. However, the Congress and the League were unsuccessful in reaching agreement on a formula for the protection of Muslim religious and economic rights and for Muslim representation in an independent Indian Government. Mounting tension over the question of Hindu-Muslim relationships, coupled with widespread disappointment at the limited extent of British reforms, led to a series of bitter communal disturbances which recurred in India at intervals from 1920 until the outbreak of World War II.

## Pakistan and Partition

The idea of Pakistan as a separate Muslim nation to be created by a partition of India developed in the 1930's. In 1940 the Muslim League, led by Mohammed Ali Jinnah, officially endorsed the goal of establishing Pakistan as a homeland for the Muslims of the subcontinent.

At the end of World War II Great Britain took steps to grant India independence. The National Congress and the Muslim League were unable to agree, however, on the terms for drafting a constitution or on the method for establishing an interim government. Finally, in June 1947, the British Government declared that it would grant full dominion status to two successor states- India and Pakistan. Pakistan was to consist of the contiguous Muslim-majority areas of British India; Bengal and the Punjab were to be partitioned, and the princely states were to be free to accede to either dominion. Pakistan thus became a self-governing dominion within the Commonwealth on August 14, 1947.

## Post-Partition

The partition of India, particularly the Punjab, was accompanied by communal rioting with the loss of tens of thousands of lives. Some 6 million Muslims fled to Pakistan and a like number of Hindus and Sikhs to India.

The death of Jinnah in 1948 and the assassination in 1951 of his political successor, Prime Minister Liaquat Ali Khan, deprived Pakistan of its two most able leaders and dealt a serious blow to the nation's political development. The political instability which followed brought frequent partition realignments and cabinet changes in the central Government as well as in the provinces. After 1954 the situation was aggravated by gradual economic deterioration.

On March 23, 1956, following the adoption by the National Assembly of a new constitution, Pakistan ceased to be a dominion and became a sovereign "Islamic Republic" within the British Commonwealth.

In 1958 a group of senior military officers, who heretofore had avoided direct political involvement, considered it necessary to take control of the nation's affairs. On October 7, 1958,

then-President Iskander Mirza, supported by the Army Commander-in-Chief, General Ayub Khan, and other senior officers, proclaimed a "peaceful revolution" embodying the imposition of martial law, abrogation of the constitution, dissolution of the central and provincial legislatures, and abolition of all political parties.

General Ayub, who was appointed Chief Martial Law Administrator and Supreme Commander of the Armed Forces, assumed the Presidency with the resignation of Mirza on October 27, 1958. He was confirmed in office in an indirect election during the winter of 1959-60 and was sworn in on February 17, 1960, for a 5-year term.

Martial law was withdrawn on June 8, 1962, and the new National Assembly convened in accordance with a new Constitution promulgated by President Ayub on March 23, 1962, the date now celebrated as Pakistan's National Day.

The first presidential election under the new Constitution took place in January 1965, with President Ayub being reelected for another 5-year term.

## GOVERNMENT & POLITICAL CONDITIONS

On March 25, 1969, President Ayub Khan relinquished his office as President of Pakistan. The Constitution of 1962 was suspended, and Gen. A. M. Yahya Khan took over as Martial Law Administrator. Subsequently, on April 1, 1969, he assumed office as President of Pakistan.

This change of Government followed 4 months of widespread disturbances in East and West Pakistan. Prior to relinquishing his office President Ayub had met with opposition political leaders and agreed to abandon the 1962 Constitution's indirect election process and replace it with direct, universal adult suffrage. At the same time, Ayub agreed to the modification of the Government's form from an executive-dominated federal system to a parliamentary system. However, these concessions were not implemented prior to the inauguration of martial law.

Under the current martial law rule political parties and political activities have not been banned as was the case when Ayub took over in 1958 via the martial law route. The martial law authorities have stated their intent to restore constitutional rule when internal political conditions have stabilized, the Government administration has been freed from corruption, and the number of political parties has been reduced to a number which could responsibly participate in a parliamentary form of government. Concurrently the martial law regime is exploring the grievances of workers and students expressed during the period of political agitation.

One of the principal problems to be resolved is the question of the role of East Pakistan in a reconstituted government. East Pakistan maintains that it has been under-represented in the central Government and denied its share of central Government resources.

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It is yet too early to predict when a transition from martial law to constitutional government may be attempted. Many difficult issues must be resolved, and the process of achieving a political consensus acceptable to the martial law authorities and politicians may take some time to evolve.

## ECONOMY

Pakistan bears the usual burdens of a developing country—a very low per capita income (about U.S. $100 in 1968), a large and growing population, a rigidly stratified traditional society, a minimal level of literacy and other needed skills, an archaic educational system, a predominantly agricultural economy of small farms primitively cultivated, a yet inadequate infrastructure, and chronic balance-of-payments problems.

Pakistan does, however, appear to have adequate natural resources to develop a viable economy. In agriculture there is a real prospect of food grain self-sufficiency—wheat and rice in West Pakistan and, in the more distant future, rice in East Pakistan. Pakistan has useful export crops in jute (East Pakistan) and cotton (West). Potential also exists for food grain exports as production increases. Natural gas discoveries in both provinces have provided the country with a source of mineral fuel it previously was thought to lack. In addition, water from two of the largest river systems in the world—the Indus and the Brahmaputra-Ganges—is an important resource for irrigation and hydroelectric power. As the country surmounts its indigenous capital-formation institutions and deficiencies of trained manpower in the middle and lower echelons of government and business, these resources will be increasingly exploited.

## Agriculture & Natural Resources

Pakistan's most important natural resource is its land; agriculture accounts for almost 50 percent of its national income. The agricultural sector provides employment for three-quarters of the population and contributes more than two-thirds of the country's exports. The expansion of irrigation facilities and active land reclamation projects have made possible the use of arid land in West Pakistan. East Pakistan's rich, fertile soil and abundant rainfall permits two crops a year in many regions and with adequate irrigation during the dry seasons, three crops are possible.

In 1968 there was a breakthrough in food grain production. Final estimates for the 1967-68 crop year show wheat production at 6.4 million metric tons, a 47.4 percent increase, and rice production at 12.5 million metric tons, a 15.8 percent increase. The Government estimates that there will be self-sufficiency in food grains by 1970.

Favorable weather in West Pakistan was responsible in part for last year's increase, but it was the use of high-yielding seeds and heavy fertilizer inputs that permitted taking full advantage

of the favorable weather. In 1969 the crop is expected to be slightly higher than in 1968, although the weather has not been as good. An even-wider utilization of high-yielding seeds and fertilizer will permit 1969's projected increase, an encouraging indication that the high production will be maintained.

Mineral resources include limited amounts of coal, petroleum, iron ore, chromite and gypsum, and large reserves of natural gas. Coal production meets less than half of Pakistan's annual requirements. The exploitation of natural gas at Sui and Mari in West Pakistan and Sylhet in East Pakistan has changed the fuel and power situation. Capacity for electric power production in 1965 was estimated at 1,400 megawatts, of which more than three-quarters was hydroelectric. By 1970 the country's installed capacity of electric power is expected to double.

## The Indus Basin

The Indus Basin, lying mostly in Pakistan and partly in India, is the largest canal-irrigated area in the world. The waters of the Indus system were divided by the partition of the subcontinent in 1947, giving India control of the upstream reaches of the rivers. Following a long Indo-Pak dispute over the Indus waters, a settlement was negotiated under the auspices of the World Bank (International Bank for Reconstruction and Development) and incorporated in the Indus Waters Treaty of 1960. It allocated the waters of the three western rivers to Pakistan and the waters of the three eastern rivers to India. Under the terms of the settlement, Pakistan is to construct a system of works (dams, link canals, and barrages) to replace the irrigation water lost to India by the treaty.

These projects, to be completed over a 10-year period, are being financed under the Indus Basin Development Fund (IBDF) Agreement by contributions from the World Bank and several friendly governments (the United States, Australia, Canada, West Germany, New Zealand, and the United Kingdom), as well as from Pakistan and India (whose contributions are provided for by the Indus Waters Treaty). The total amount pledged by all the IBDF contributors was originally fixed in the agreement at about U.S. $895 million; the contributors (except for Pakistan and India) agreed in late 1963 to additional contributions of $315 million. The U.S. contribution as specified in the agreement includes a grant of $177 million, a loan of $70 million, and grants or loans amounting to $235 million. The proportionate U.S. share of the newly pledged $315 million is about $170 million.

The large Mangla Dam was completed in the spring of 1967 and shortly thereafter financing for the even larger Tarbela Dam was confirmed. Construction of Tarbela, on the Indus River, is now underway and completion is expected by 1975. The United States has contributed an additional

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$50 million to the Tarbela project through the Export-Import Bank.

## Industry

At the time of independence there was little organized industry in Pakistan. Partition in 1947 had left India with most of the subcontinent's industrial base. New industrial plants were spawned without a strong economic base, and although the Korean war boon temporarily cushioned this weakness, by the mid-1950's many of the new plants were under-utilized.

By the early 1960's a more rational approach to industrialization was adopted; new plants based on available raw materials and others for which there was a ready market, such as fertilizer, were started. This policy has succeeded, and now industrial production accounts for 12 percent of the gross national product and is increasing.

## Foreign Trade

Pakistan's imports have consisted mainly of food grains, capital goods for development efforts, industrial raw materials, and a limited amount of consumer items. Between 1960 and 1965 imports rose by about 12 percent annually to an all-time high of $1,043 million in 1965. Because of the outbreak of hostilities with India in September 1965 there was a temporary suspension in foreign assistance and imports were restricted, falling to $900 million in 1966. Imports have since recovered and now amount to about U.S. $1 billion annually.

Pakistan's traditional exports—raw jute, jute manufactures, raw cotton, and textiles—still account for 60 percent of the total. Under a Government program a concerted effort has been made to diversify exports, and the export of light manufactured products is becoming more important. As the production of food grains increases, Pakistan can be expected to continue exporting rice and begin exporting wheat. Pakistan's major trading partners are the United States, the United Kingdom, and the Soviet Union, with lesser amounts to Communist China and the Eastern bloc nations. Total exports now amount to about $600 million.

Pakistan's imports from the United States increased from $159 million in 1961 (24.8 percent of total) to $415 million in 1964 (41.6 percent) but declined to $262 million in 1966 (29 percent). The 1966 low was primarily the result of the temporary suspension of Agency for International Development (AID) assistance and Public Law 480 (Food for Peace program) shipments, but it also represented the effort on the part of the Government of Pakistan to restrict all imports in the wake of the fighting with India in 1965. In 1967 U.S. exports were $320 million and the U.S. share of the market was 29 percent. For 1968 U.S. exports decreased to $307 million out of a total of $978 million, but the U.S. share of the market increased to 31 percent.

## Development Plans & Foreign Economic Assistance

Since 1955, Pakistan's economic development efforts have been formulized in a series of 5-year plans.

Although there were many successful highlights during the First Five-Year Plan (FY 1956-60), social and structural difficulties blunted the effectiveness of the development efforts. This was reflected in a virtual absence of growth in per capita income, attributable to two principal factors—the discouraging performance of the agricultural sector which contributed more than half of the gross national product (GNP) and employed 74 percent of the labor force, and therapid growth of population, which was increasing twice as fast as agricultural output. The growth that had taken place was the result of a Pakistani development strategy which sought maximum aid absorption through substantial investment in the monetized sectors, primarily concentrating on a drive for industrial self-sufficiency.

In 1958, following his assumption of power, President Ayub instituted a "Decade of Development." The emphasis was to be on pragmatic development policies oriented to the private sector and with a primary emphasis on agriculture. The correctness of these policies became apparent about 1962-63, midway through the Second Five-Year Plan, when economic indices began to move sharply upward and to exceed the expectation of the plan itself. GNP at current prices jumped from $8.5 billion in FY 1963 to $10.1 billion in FY 1965. Major agricultural output increased from $4.1 billion in FY 1963 to $4.6 billion in FY 1965. There were a variety of reasons for the increases, but greater domestic political stability, the more pragmatic approach to development with greater emphasis on agriculture, and an effort to consolidate previous gains and to concentrate on the weak points in the economy were the most important. GNP in 1968 amounted to about $12.5 billion.

The achievement of the Second Five-Year Plan was so promising that an overall yearly growth rate of 6.5 percent was considered possible during the Third Five-Year Plan (FY 1966-70). The third plan originally envisaged a total expenditure of nearly $11 billion, with $7.5 billion coming from domestic resources and $3.5 billion from external assistance. For a variety of reasons, but primarily because of the Indo-Pakistan war of 1965, this level of assistance has not been reached, and although resource commitments from Communist countries have increased, they are still only about 10-15 percent of free-world commitments and have not made up for the smaller volume from free-world countries. Actual expenditures during the first year of the plan (FY 1966) were about 21 percent below expectation, with the shortfall largely in the public sector where resources were adversely affected by both reduced amounts of foreign assistance and larger defense expenditures.

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Private sector development efforts continued almost unabated.

Because of the shortfall in commitments, the Government initiated a review of the third plan and in May 1966 decided that the size, objectives, and main targets of the plan should remain unaltered, but the sectoral allocations and priorities should be revised. The main objective of the revision of priorities was to secure the desired acceleration of economic growth with a lower level of total investment. This was to be achieved by concentrating on agriculture, more fully utilizing installed capacity, and postponing or reducing import intensive or capital intensive investment with long gestation periods and delayed payoffs. The impressive increase in agricultural production in 1968 was one result of this revision.

To date, more than $4.9 billion in assistance has been committed by all sources, with the United States committing more than $2.3 billion in economic assistance ($8.8 billion grants and $1.5 billion loans) and $1.3 billion in Public Law 480 aid.

In its development program Pakistan has recognized the importance of internal transportation facilities. It has, with extensive foreign assistance, expanded, improved, and modernized its railroad system and also has taken steps to improve its highway and internal waterway facilities. Pakistan International Airlines operates domestic and international jet services. In the communications field, projects to improve and expand both telephone and radio communications are in progress, including interprovince connections via satellite.

# FOREIGN RELATIONS

## Relations with India

Relations between India and Pakistan reflect a centuries-old Hindu-Muslim rivalry and a mutual suspicion which led in 1947 to the creation of the two states. Many issues divide India and Pakistan, but the most sensitive issue is that of the status of the former princely state of Jammu and Kashmir.

At the end of World War II this state had a population which was 77 percent Muslim but was ruled by a Hindu maharajah. When the maharajah hesitated to accede to either of the new dominions in 1947, some of his Muslim subjects revolted against his rule and were supported by armed tribesmen from Pakistani territory. The Hindu maharajah thereupon offered to accede to India in return for military assistance to repel the invaders. India accepted the accession on the condition that Kashmir's ultimate status would depend upon the expressed will of the people. In the fighting that followed, Indian troops were able to gain control of the eastern part of Kashmir, including the Valley of Kashmir, and the capital city of Srinagar.

India took its dispute with Pakistan over Kashmir to the United Nations on January 1, 1948, and

a year later the United Nations succeeded in arranging a cease-fire along a line roughly dividing the state in half but leaving a majority of the population under Indian control. The following years saw a series of minor skirmishes and firefights along the cease-fire line. The Kashmir dispute led to full-scale hostilities in September 1965. The conflict was brought to an end after 3 weeks through the efforts of the U.N. Security Council. Subsequently, in the Tashkent Declaration of January 1966, both countries agreed to a specific troop withdrawal timetable and to further action to restore conditions of peace on the sub-continent. However, continued efforts have failed to produce any progress toward a final settlement of the Kashmir problem.

Other important issues between India and Pakistan have included: (a) border disputes arising from inadequately defined or demarcated borders between the two countries; (b) the division of water from rivers flowing into Pakistan from Indian-controlled territory; (c) economic and financial problems arising from the 1947 partition; and (d) the problem of the settlement of refugees who continue to move from one country to the other.

Some progress has been made in settling these disputes, the most notable settlement being the Indus Basin agreement of 1960. Several disputed sections of the Indo-Pakistan border also have been demarcated, and the problem arising over the Rann of Kutch area was decided by an international arbitration tribunal.

# Relations with Afghanistan

Relations in the past have been complicated by the longstanding controversy over the "Pushutistan" issue. The basis for this controversy was the establishment of the "Durand Line" (1893) following the second Anglo-Afghan war. In effect, the line divided the territory inhabited by the Pushtun tribes: Part went to Afghanistan and part to India. The partition of India and transfer of political authority over the Pushtuns along the frontier to the successor Government of Pakistan precipitated the issue. The Afghans vigorously protested the inclusion of Pushtun areas within the borders of Pakistan without giving the Pushtuns the opportunity to opt for either self-determination or inclusion in Afghanistan. Pakistan regards the Durand Line as an established international border confirmed by successive Afghan rulers and takes the position that Afghan claims to an interest in the status of the people in the area constitute interference in its internal affairs. Although this issue resulted in the closure of the Pakistan-Afghanistan border from 1961-63, relations between the two countries are now good.

# Relations with the Soviet Union

Pakistan's relations with the U.S.S.R. have traditionally been correct, but Pakistan's membership in the Central Treaty Organization

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(CENTO) and the Southeast Asia Treaty Organization (SEATO) and the support given by the Soviet Union to Afghanistan on the Pushtunistan issue and to India on the Kashmir dispute have inhibited the development of close relations. Soviet sponsorship of the Tashkent meeting after the September 1965 Indo-Pakistan hostilities was seen by many Pakistanis as a sign that the U.S.S.R. wished to develop closer relations with Pakistan. Since Tashkent, Pakistan has made a conscious effort to strengthen Pakistan-U.S.S.R. ties through the exchange of various cultural and trade groups and high-level delegations. Trade between the two countries has increased during the past 5 years, and Russia has continued to provide economic aid to Pakistan. President Ayub's visit to Russia in the fall of 1967, the third visit in 2 years, helped to confirm the good relations existing between Pakistan and the U.S.S.R.

Additional evidence of the improved state of Pakistan-Soviet relations is reflected in reported Soviet willingness to consider assisting Pakistan with its military supply problem.

## Relations with Communist China

Pakistan recognized Communist China in 1950, following the example of other Commonwealth nations, and diplomatic relations were established the next year. Relations have in general been cordial.

Relations have grown much closer since the Sino-Indian hostilities of 1962. A boundary agreement was signed in Peking on March 2, 1963. Trade, economic, cultural, and civil air agreements have also been concluded. President Ayub visited Peking in 1965, and there have been numerous other visits by high-ranking officials of both Governments. Because of the military and diplomatic support extended to Pakistan by the Communist Chinese, Pakistan considers good relations with Red China as an essential element of its current foreign policy.

## Relations with the United States

Diplomatic relations between the United States and Pakistan were established upon the independence of the latter in 1947. With the extension of United States military and economic aid to Pakistan in 1954 and its subsequent participation in CENTO and SEATO, relations between the two countries became increasingly close. In 1962, when the United States provided some military aid to India following the Chinese Communist attack on India, Pakistani public opinion, fearing the use of these arms against Pakistan, became increasingly critical of Pakistan's close relationship with the United States. Simultaneously the Government began to develop a closer relationship with Communist China. Criticism of the United States increased with the suspension of U.S. economic and military assistance to both Pakistan and India following the outbreak of hostilities between India and Pakistan in September 1965.

However, the visit of President Ayub to the United States in December 1965 and the resumption of U.S. economic assistance to Pakistan in February 1966 did much to restore a feeling of confidence. In April 1967 the United States announced a new limited military supply policy for Pakistan and India which does not include grant aid. This policy is based on the interest of the United States in the reduction of defense expenditures on the subcontinent and in progress toward a peaceful resolution of Indo-Pak differences.

## U.S. POLICY

Peace, freedom, and development for all of the countries of South Asia are the primary objectives of U.S. policy. In Pakistan, the United States has provided large-scale technical and economic assistance, including programs designed to provide the foreign exchange necessary for implementation of the country's excellent development plans. The importance of increased agricultural production and a dynamic population control program have been stressed with good results. We have also encouraged the settlement of differences between Pakistan and its neighbors and are now strongly emphasizing the need for restraint in defense spending by both Pakistan and India.

## PRINCIPAL GOVERNMENT OFFICIALS

President, Chief Martial Law Administrator—
Gen. A. M. Yahya Khan

Deputy Chief Martial Law Administrators—Vice-
Adm. Syed Mohammad Ahsan; Air Marshal M.
Nur Khan; Lt. Gen. Abdul Hamid Khan, Army
Chief of Staff

## Secretaries of Ministries

Foreign Affairs—S. M. Yusuf

Home Affairs, Kashmir and Frontier Affairs—
A. M. S. Ahmed (Acting)

Finance—Ghulam Ishaque Khan

Economic Affairs—Vaqar Ahmad

Health, Labor, and Social Welfare—A. K. M. Ahsan

Information and Broadcasting—Syud Ahmed (Act-
ing)

Law and Parliamentary Affairs—Aminul Islam

Commerce—A. Rab (Acting)

Defense—S. Ghiasuddin Ahmad

Education—I. H. Usmani

Industries—A. G. N. Kazi

Food and Agriculture—Ali Hasan (Acting)

Communications—A. Rashid

## Other Officials

Deputy Chairman, Planning Commission—M. M.
Ahmad

Ambassador to the U.S.—Agha Hilaly

Ambassador to the U.N.—Agha Shahi

Pakistan maintains an Embassy in the United States at 2315 Massachusetts Avenue, N. W., Washington, D.C. 20008.

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## PRINCIPAL U. S. OFFICIALS

Ambassador—

Charge d'Affaires—James W. Spain

Defense Representative—Brig. Gen. Leo P. Geary

Director, U.S. AID Mission—C. William Kontos

Public Affairs Officer—Gilbert F. Austin

Counselor for Political Affairs—Stephen E. Palmer, Jr.

Counselor for Economic Affairs—Lubert O. Sanderhoff

Counselor for Administration—Virgil L. Moore

## Consulate Posts

Consul General, Dacca—Leslie A. Squires

Consul General, Lahore—J. Wesley Adams, Jr.

Consul General, Karachi—Henry C. Ramsey

Consul, Peshawar—Stephen Winship

The U.S. Embassy in Pakistan is located at 57-A Satellite Town, Rawalpindi.

## READING LIST

Ali, Chaudhri Muhammad. The Emergence of Pakistan. New York: Columbia University Press, 1967.

Ayub Khan, Mohammad. Friends, Not Masters, A Political Autobiography. New York: Oxford University Press, 1967.

Brown, W. Norman. United States and India and Pakistan. Cambridge: Harvard University Press, 1963.

Sayeed, Khalid Bin. The Political System of Pakistan. Boston: Houghton Mifflin, 1967.

Spain, James W. Peoples of the Khyber: The Pathans of Pakistan. New York: Praeger, 1963.

Stephens, Ian M. Pakistan. New York: Praeger, 1963.

Wallbank, T. Walter. Short History of India and Pakistan. New York: Mentor Press, 1962.

Weeks, R. V. Pakistan: Birth and Growth of a Muslim Nation. Princeton: Van Nostrand, 1964.

Wilber, D. N. Pakistan, Its Peoples, Its Society, Its Culture. New Haven: Human Relations Area Files Press, 1964.

## How To Obtain Background Notes

Write to the Superintendent of Documents, U.S. Government Printing Office, Washington, D. C. 20402, for any item, or combination of items, from among the following material:

1) Complete set of all looseleaf Background Notes currently in stock (at least 125). . . . . $6.00 per set, plus $1.50 for foreign mailing.

2) One-year subscription service for approximately 75 updated or new Background Notes. . . . . $3.50 per year, plus $3.00 for foreign mailing.

3) Hidden-hinge binder for Background Notes . . . . $1.50 each, plus 40 cents for foreign mailing. (Consists of front and back pressboard cover and two fasteners.)

4) Individual Background Notes . . . . $0.10 each, add 25 percent for foreign mailing. (Orders of 100 copies or more of the same Note sent to the same address are sold at a 25 percent discount.)

DEPARTMENT OF STATE PUBLICATION 7748

Revised July 1969

Office of Media Services

Bureau of Public Affairs

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