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INTRODUCTION

A study of United States aid to Pakistan affords an interesting example of the purpose, extent, and character of the foreign aid programs of our Government under the unique conditions found in one of the world's largest and newest nations. And it is not a microscopic example. American taxpayers have spent more in Pakistan in the last 4 years ($250 million) than they have spent for the entire legislative branch of our Government during the same period. By design and necessity, our aid to Pakistan has been based on the economic and political circumstances existing there. These factors have had a major impact on the shape and nature of United States activities, and are therefore discussed in this paper. They also form the background against which our aid has been applied, and, in the final analysis, the effectiveness and success of our aid can only be evaluated in terms of the changes, and improvements, it brings about in Pakistan.

I. General Background

Pakistan, "land of the pure," was created in the August 1947 partition of British India out of the conviction of a majority of the Muslims that they possessed genuine national interests separate and distinct from those of the Hindu majority in India. Pakistan's problems, as a nation, started with partition and continue, little abated, to the present.

Its geography alone poses a problem of staggering dimensions. The two parts of the country are separated by a thousand miles of Indian territory. West Pakistan contains 85 percent of the land area, but only about 45 percent of the total population of 76 million. A large part of its area is arid and its agricultural economy is sustained by one of the world's most intricate network of irrigation canals. The native language is Urdu. Many of the people, notably the Punjabi, are a strong, aggressive, and even warlike race. East Pakistan is a subtropical area, housing 55 percent of Pakistan's population on only 15 percent of the land area. Bengali is the national language and East Pakistan's residents are a different type of people, by custom, habit, and temperament than those of West Pakistan.

The principal cohesive force in the nation is the Muslim religion, observed by 86 percent of the population.

In addition to a divided nation, the partition left Pakistan with a great shortage of trained personnel, both for industrial needs and for government itself. The Indian civil service developed by the British was dominated by Hindus, who did not remain in Pakistan. Furthermore, those Muslims who did have training in government service generally were not natives of the areas now comprising either East or West Pakistan. Many of these now hold top government positions despite their status as refugees. This has brought an unfortunate reaction, especially in East Pakistan where the slogan "Bengal for the Bengali" has gained considerable support.

The partition itself was a bloody affair, riots and bloodshed taking the lives of some 500,000 persons in India and Pakistan. Millions of refugees crossed the Pakistan-Indian borders in both directions, leaving behind them millions of dollars' worth of property accumulated over generations. The myriad personal wounds of the partition have scarcely had time to heal.

Partition also split jurisdiction over the valley of the Indus River, principal water source for West Pakistan, between India and Pakistan. The British had developed the Indus River system on an integrated basis and the partition has invoked a deep controversy over

use of the river water. The World Bank is now trying to assist the two countries to resolve this problem.

Kashmir, like the disposition of property left behind and the Indus waters, is a source of dispute with India. It is a Muslim majority area, but as a princely state with the option of joining either India or Pakistan, its Hindu maharajah acceded to India. U. N. attempts at settlement by a plebiscite have failed to date.

Pakistan's relations with Afghanistan, its northwestern neighbor, have never been friendly because of a dispute over the status of tribal people along the border between the two nations.

Internally, Pakistan has had a parliamentary type of government modeled along British lines. In recent months, however, the governor general has dissolved the constituent assembly and the power is now held by the governor general and a strong cabinet.

The chief political party in Pakistan is the Moslem League. It is opposed by a number of loosely organized groups united only in opposition. The Moslem League, however, was defeated in provincial elections in East Pakistan last year and its political strength in West Pakistan is believed to have waned considerably. No national elections have been held in 7 years.

Pakistan's Role in the World

Pakistan occupies a special position as both a Middle Eastern and an Asian nation. It is the largest Muslim country in the world and has seen itself as a leader of the Muslim world, as well as an Asian power.

It is clearly and firmly aligned with the free world and has rejected the neutralist approach. In addition to its military agreement with the United States, Pakistan is one of the signers of the SEATO pact and has signed a military assistance agreement with Turkey.

Pakistan's northern border comes within 18 miles of Soviet Russia and it assumes added strategic importance from the fact. Furthermore, internal communism is not believed to have much strength in Pakistan.

United States relations with Pakistan have been increasingly close and harmonious. Vice President Nixon, Secretary of State Dulles, and FOA Director Stassen have all visited Pakistan within the last 2 years. The Prime Minister and other high officials of Pakistan have visited the United States. Pakistan, too, participates actively in the U. N. and many of its related agencies.

United States Objectives in Pakistan

The broad compelling objective of the United States with respect to Pakistan is expressed as a joint objective of both countries: "The strengthening of the economy and the defense capabilities of Pakistan." 1

In other terms, our objectives apparently are to aid Pakistan to improve its economic stability and strength in order to maintain internal security and to realize its potential ability to become a stronger force in the ranks of the free world.

Improving political stability, listed as one of the United States objectives, cannot be disregarded in the case of Pakistan, an 8-year-old nation without any history of self-government and lacking even its own constitution.

Our objectives with respect to Pakistan are met by three broad categories of aid:

A. Technical cooperation, development assistance, and defense support.-Designed to supply Pakistan with some of the external supplies, equipment, and know-how for the construction and management of projects for the development and strengthening of the economy of the country.

B. Commodity aid.-Designed to give direct assistance to the problems of shortages of consumer goods and industrial raw materials. The aid is planned to meet the needs of the civilian economy-in short, to improve living conditions and help end the inflation and shortage of goods which has contributed to the unrest, dissatisfaction, and instability in the country.

C. Military aid.-Contributing directly to strengthening the defense capabilities of Pakistan.

1 Joint United States-Pakistan communique issued in Washington, October 21, 1954.

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