413. Telegram From the Department of State to the Embassy in Jordan ¹1. Source: Department of State, Central Files, 785.5–MSP/9–2660. Confidential. Drafted in NEA by E. S. Duncan and cleared by Meyer and with BNA. Also sent to London and repeated to Bonn.

Washington, September 30, 1960—11:18 p.m.

470. Following based on uncleared Memo of Conversation, Sept 26 between Acting Secretary and Selwyn Lloyd regarding aid to Jordan.²2. Not printed. (Ibid.; included in the microfiche supplement) Selwyn Lloyd was in Washington to participate, along with Dillon, in the annual meetings of the Boards of Governors of the International Bank for Reconstruction and Development, and the International Monetary Fund, held in Washington September 26–30.

Dillon reviewed need for increased UK contribution. He stressed importance to US of being able to point to situations where our Free World partners were working together with us on aid programs in underdeveloped countries. Jordan was logically one such example. Dillon noted US FY 61 funds for Jordan budget support would suffice through current Jordan fiscal year ending March 1961 but UK contribution approximately double that of current year would be needed immediately thereafter. He also reiterated view that current ratio of 85% to 15% in respective US and UK contributions to Jordan budget was unfair.

While admitting possibility “marginal increase”, Lloyd did not confirm any specific amount and insisted possibility of German contribution should be explored further. As obstacles to increased UK contribution Lloyd cited UK balance of payments problems and expanded assistance requirements of Commonwealth and newly independent nations.

Dillon confirmed US hope Germans will assume greater share free world aid burden and concurred in desirability efforts along this line. In concluding meeting however he emphasized that UK representatives knew well the problem Jordan aid posed for US and accordingly he would rely on them to do all they could.

Herter