The Club Comes Through

Over the last three years, five Western nations have supplied most of the foreign currency needed for India's economic growth. Last month the five, informally dubbed the "Aid to India Club," gathered in Washington to discuss India's newest needs. India had asked for only $1.5 billion over the first two years of its ambitious new five-year plan. In a move that startled the club's other members, the U.S. upped the ante, offered to put up $1 billion singlehanded--if the other club members would match the sum. Jolted and impressed, the other members (Canada, West Germany, Britain, Japan) sped home to check their exchequers. Last week they not only came back with matching pledges, but also with a new member for the club: France. As a result, the six nations and the World Bank will provide India with a whopping $2,225,000,000 in low-cost loans and credits over the next two years.

With its proffered $1 billion (subject to congressional budget trimming), the U.S. is far and away the biggest contributor. Next: the World Bank with $400 million, Germany with $364 million. The boost reflects President Kennedy's own long advocacy of Indian aid during his Senate days, plus Nehru's persuasive argument that his country is not only the world's biggest democracy, but also contains a third of the world's backward people. It will bring to nearly $5 billion the U.S. aid to India since 1951, v. Russian aid of roughly $800 million so far.

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