I understand that during the meeting of Commonwealth Prime Ministers the Pakistan delegation raised with our delegation the question of the food shortage which is anticipated in Pakistan as a result of a short crop this year. Our High Commissioner in Karachi has also been in touch with the Pakistan Government on this question and we have now received what amounts to an official request from the Minister of Economic Affairs for special Canadian assistance in the form of a gift of wheat.

2. When a preliminary approach was made by the Pakistan Government to our High Commissioner a few weeks ago we consulted officials in the Department of Trade and Commerce, who in turn discussed with Mr. Howe the possibility of Canada providing wheat for Pakistan. Because of the limitation of Colombo Plan funds which are in prospect for Pakistan over the next two years (we expect that almost all of Pakistan's allocation will be required for the Warsak Project and other agreed development projects) Mr. Howe was not enthusiastic about the financing of wheat with Colombo Plan funds. The Pakistan Government has also indicated that they do not wish to divert Colombo Plan funds from vital development projects. On the basis of information available at the time it was also quite uncertain how critical the food shortage was going to be and Mr. Howe did not commit himself to what his reaction might be should you wish to propose that special funds might be voted for famine relief to Pakistan as the Canadian Government did in 1953. Mr. Howe remarked, however, that he was very reluctant to see Canada undertake any arrangements which might be presented in the same light as the United States surplus disposal programmes.

3. We have now had further information of a statistical nature on the anticipated food shortage in Pakistan. I am attaching a copy of telegram number 217? from Karachi which reports on the existing stocks and anticipated crops in Pakistan and on the amount of assistance which other governments (the United States and Australia) have undertaken to provide. However, the seriousness of the situation is far from clear and in this message as in earlier messages it is emphasized that hoarding of wheat throughout the country is partially responsible for the wheat crisis. In paragraph six of telegram 217 there is what amounts to an admission on the part of the Pakistan Government that they will probably not be able to bring the hoarded wheat on to the market until additional stocks have been provided from abroad to restore confidence.

4. We have, on the basis of our earlier discussions with the Department of Trade and Commerce, already indicated to the Pakistan Government that there was not an enthusiastic reaction in Ottawa to the proposal that Canada might provide a special gift of wheat to Pakistan at this time. Since that time however, I believe it has become reasonably certain that there will be substantial hunger and privation in West Pakistan and our High Commissioner has recommended that a sizeable gift from Canada would mitigate this. (He has suggested that this might be on a scale similar to that in 1953 - $10-million).

5. I am consulting you to enquire as to whether you wish to raise with Mr. Howe and Mr. Harris the possibility of asking Parliament for special funds for this purpose. On the basis of discussions with officials in the Department of Trade and Commerce and the Department of Finance, it is my impression that there are substantial reservations at their level about the provision of a gift from Canada partly because of the hoarding situation, partly because of unwillingness to enter into give-away programmes for wheat and, finally, (on the part of the Department of Finance) because of an unwillingness to see additional financial commitments undertaken at this time.

6. From our point of view the above thinking has considerable validity if the danger of a serious food crisis is being exaggerated; but, if in fact there is a real famine threatening it would be unfortunate if the Canadian Government failed to respond to help another friendly Commonwealth country, especially since others (U.S.A., Australia) are sending gifts. Moreover, the possibility can not be ruled out by any means that the U.S.S.R. will not provide help (whether the danger of a famine is real or simulated), especially since they are purchasing rice surpluses of other countries in the area.³⁸

7. Perhaps before consulting other Ministers you would like us to ask our High Commissioner to approach the Pakistan Minister of Economic Affairs and ask him quite frankly if he considered that a serious famine was in prospect;³⁹ perhaps it might not be indiscreet if Mr. Scott were to point out that the rumours of hoarding were somewhat disturbing to those in Ottawa who were examining the Pakistan request. It would be helpful if we had a frank opinion from the Pakistan Government whether distribution by the army as was undertaken recently in East Pakistan might bring hoarded grain to the market.

8. If you agree with this suggestion you may wish to approve the attached telegram? to Mr. Scott.

J. L[ÉGER]