US announcement on arms aid to India surprises Delhi
From Our Political Correspondent, NEW DELHI July, 12.–The announcement by the US State Department that $5 million has been earmarked as military aid to be given to India in 1972 has come as a surprise to New Delhi.
The Government of India is not aware for what specific purpose the money has been set apart or even if it has been set apart at all. No such provision was made in the US budget for 1971.
Preliminary discussion has taken place between Washington and New Delhi, for a training programme of Indians in the USA. Even if the money had been provided for this purpose, there was no agreement with India nor any consultation.
Talks are going on between the two Governments for the purchase by India of electronic equipment, which is a nonlethal item, on normal terms of credit, that is on a deferred payment basis. Under its 1967, policy Washington allows purchases of non-lethal items. India has in fact bought some such items in the past.
It is possible that the USA has offered for sale to India some electronic equipment. If India decides to buy it, credit may be given by the USA. But India, which is examining the offer to be sure that it suits her, has not yet taken a decision.
Reference: Hindustan Standard 13.07.1971