1971-10-02
By Hella Pick
Page: 0
Washington, October 1. Pakistan has been told during the World Bank meeting that there will be no resumption of aid by the Western nations making up the Pakistan aid consortium as long as the political crisis continues. But India is likely to receive more development aid as compensation for the resources that she has been devoting to millions of Pakistani refugees. It has been agreed that the Western consortium which has been the principal source of aid for India is to meet in Paris at the end of October to discuss new allocations. It is understood that the United States, in spite of her overall 10 per cent aid cut, is ready to increase contribution.
The Indian development programme - which donors feel must not be allowed to slip back - has stopped because of the cost of refugee relief. With the strong backing of the World Bank, the 11-nation Pakistan consortium decided in May to halt aid. Although Pakistani officials have used the World Bank Meetings here to make strenuous please for a resumption, they have met with vehement refusals. It has been made clear to Pakistan, by the Bank, Britain and the US, that there is no possibility of a resumption of aid from the consortium until there is a genuine prospect of a political settlement. The consortium is meeting informally tomorrow to discuss technical details concerning the Pakistani request for relief over her debt service liability. This will also be used as an opportunity to reiterate formally that there can be no resumption of discussion on the Pakistani foreign aid requirements.
Observers here even hope that the deterioration of the economic situation may force President Yahya Khan to increase efforts towards a political solution. The economy of East and West Pakistan is at a virtual standstill. Foreign exchange from earlier allocations is running out, and will halt next sPring, when tfie Pakistani economy will be in very deep trouble. Latest figures received by the World Bank indicate that there are seven and a half million Pakistani refugees in camps in India and a further one and a half million without any care. It has also been calculated now that the shortfall of food to East Pakistan, caused by the disorders and the neglect of the farming areas, will be about two and a half million tons of cereals.
The United Nations can obtain the food from countries like Canada and Japan. The problem would be distribution and transportation. Thought is being given even to the possibility of shipping some food through Calcutta and allowing the Bangladesh movement to distribute it in East Pakistan among its followers - who at least would command greater confidence among the population than the Pakistan army. What matter to the UN and the Bank authorities is that the food should reach the needy, that starvation be prevented, and that further refugee movement into India be discouraged.
In Key Biscayne, Florida. President Nixon urged speedy Congressional approval of £104 millions in additional relief and rehabilitation funds for East Pakistani refugees in India, and for humanitarian needs in East Pakistan. The US has already provided about £99 millions in aid. The President said not only had there been civil disturbances in East Pakistan but the area had been hit by natural disasters. “Unchecked, this situation could drift toward greater disaster in the form of famine or even war.”
In Rawalpindi. It has stated that Pakistan had strongly protested to India against the “harassment” of Pakistan merchant ships by the Indian navy. The Note says one vessel was followed by two warships. Another vessel reported that three warships in formation had come within 200 yards of her before steaming away.
At the United Nations. A delegation from the Bangladesh movement said it would seek UN intervention in the “murder” of Bengalis by the Pakistan Government. “It is the duty of the United Nations to come to our aid against the ruthless oppression of the army of Yahya Khan,” the delegation said. “The United Nations must raise its voice against genocide, and recognize that it is a war of liberation, and that the Government of Yahya Khan derives its strength from no other source than brute strength and murder.”