PL-480 RUPEE AGREEMENT SIGNED On February 18, 1974, the Government of India and the Government of the United States formally signed an Agreement for the disposition of U.S.-owned rupees generated by PL-480 grain sales and other American economic assistance to India in the past 20 years; The signatories were the same two men who had previously initialed the Agreement two months earlier-Indian Economic Affairs Secretary M.G. Kaul and American Ambassador Daniel P. Moynihan. After the signing, Secretary Kaul made the following remarks: "Mr. Ambassador, on the 13th of December 1973, you joined with me in initialing an Agreement between the Government of India and the Government of the United States on the disposition of the PL-480 and other U.S.-held rupees. It was our understanding that as soon as legislative and government approval had been completed, we would meet again to conclude this Agreement formally. This we are now doing .... "Under the various agricultural sales agreements, commonly called PL-480, the U.S. sold to India from 1956 to 1972 about 60 million tons of agricultural products of value of about $4.8 milAmbassador Moynihan (left) shakes hands lion. We have repaid today, under the terms of this Agreement, the with Secretary Kaul after signing the rupee Agreement. loans given to the Government of India against the sale proceeds of these commodities. A large part of this repayment is now being ther strengthening of economic relations between us, an objective granted to us under the terms of this Agreement, and we have toward which we must proceed with the utmost dispatch. The agreed to attribute these funds to a number of development pro- mutual trust begotten by this Agreement will, I am sure, make this jects in the Fifth Five-Year Plan. This attribution is in recognition effort easier and more fruitful." of the large contribution made to our economy by PL-480 loans At the conclusion of Secretary Kaul's remarks, Ambassador in past years during which .agricultural commodities were received Moynihan responded with these words: and utilized by us .... "The Agreement also provides that over a period of five years the United States Government will additionally import [Indian] . " ... The Agreement which you and I have signed today is, I goods of the value of a $100 million out of which a quarter, name- submit, unique in the annals of diplomatic history. When we sat ly $25 million, will be paid for out of U.S.-retained rupees. The down several months back to start work on this Agreement, both balance will be purchased against free dollars provided by the of us were without precedents to guide us. You and your colUnited States. The scope for additional exports of this nature to leagues in Delhi, and I and my colleagues both here and in Washthe United States is large. I would hope from this small start much ington, had no textbooks to tell us how to do away with the major part of a debt owed by one sovereign country to another, apd to do larger exports unrelated to this Agreement will flow .... ~'The conclusion of this Agreement, Mr. Ambassador, is a mile- it in a way that would satisfy both the interests of the respective stone in the economic relations between our two countries, an countries and-perhaps much more important in our respective outstanding evidence of the desire to strengthen these relations on countries-to satisfy the public opinion of each. The fact that we the basis of equality and mutuality of interests. The desire to con- are here today demonstrates our success .... "Mr. Secretary, I should like very much to associate myself with clude such an Agreement has existed on both sides for many years. Only now has it become possible to bring this desire to fruition. In both the substance and the spirit of the remarks which you have large measure, this is due to the efforts made by you and to your made, amending them only to say that it is my experience and my personal involvement in ensuring a successful outcome. To this judgment, but the judgment, I think, of all the American officials end you have not spared yourself any effort, physical or mental. on this side of the table, that whatever we may have contributed to And I would, here on this occasion, wish to pay a tribute both to the willingness to bring about this Agreement, its substance, its this effort and its. success. I would in fact venture to say, Mr. form and its final completion could never have come about withAmbassador, that when you look back on your tenure in India, out your own unique role within your own country and the singuthis Agreement will stand out as a signal achievement among, of lar regard with which you are held by the representatives of other 0 course, many other achievements. It is a happy augury for the fur- countries. Thank you, Mr. Secretary."
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