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146. Telegram From the Embassy in India to the Department of State

solute essentials procurable only in the US. The only answer here is a measure of mild bilateralism. Aid being a substitute for American purchases, we must begin to put into all our significant aid agreement provisions against such substitution. The Nigeria formula is in the right direction. I do note the highly unmilitant determination in the aid memorandum—“would appear to require an effective system of exchange control…not always desirable…experiment will be (carefully) observed with a view to (possibly) extending.” And the Nigerian case does not deal at all with what I have called the deep…

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