1966-1976

In 1966 an attempt was made to end the stalemate that had come to develop in
India US relations in 1965. Indira Gandhi became PM and President Johnson
congratulate her and assured American help to India. In March 1966 Mrs Gandhi
went to US and conducted talks with President, but this visit did not produce
desired result
A change in US foreign policy during second half of 1970’s further made things
look pessimistic. By this time US dissatisfied with

1. Growing importance of USSR in Asia

2. Pakistan close relations with China
3. Aid weariness in relation with India

Now US started thinking in terms of securing a new balance in relation with other
countries, policy of massive aid for countering the Soviet influence underwent a
change. India as such started receiving a reduced quantity of US aid. Apart from
these growing Indo-USSR friendship came to be negative developments b/t them
Nixon Administration 1969-1974
Now US evolved a new strategy to place the international order on a different
footing and following are the aims of this policy

1.To preserve America's position as chief subject in international politics.

2.To place limits on USSR expanding role

3. To facilitate withdrawal of US forces from Vietnam

4.To move towards reprochement with China as a third subject in international

politics because of China’s growing nuclear capability
As such during this period USA policy towards India continued to be lukewarm. It
did not like growing Indo-Soviet friendship and India’s refusal to accept the
American viewpoint regarding security of Asia Indian Ocean Area
Bangladesh War
The lowest point in Indo-US relations came in 1971 when India first signed Treaty
of peace Friendship and Cooperation with Soviet Union and then got involved in
Bangladesh war. American regarded it as a definite tilt in IFP towards USSR. In
1971 US took up pro Pakistan stand and criticised India for interfering in internal
affairs of Pakistan. Gun Boat Diplomacy was tried by US to pressurising India
when it dispatched the US 7th fleet to the Bay of Bengal, ordered complete
stoppage of economic assistance and supply of defence equipment to India
The defeat of Pakistan in the war and the liberattion of Bangladesh changed the
strategic environment in South Asia and as result India emerged as a major power
in the region. It came as a big jolt to US policy which was based upon principle of
parity b/t Pakistan and India. The relations b/t India and US became bitter and
continued to be so many months. Further India viewed with suspicion the
emerging Washington-Peking-Pindi relations

All these factors became major irritants in Indo-US relations

Thaw of 1970’s
In 1972 US accepted aid consortium’s desire to reschedule India’s debt, India
appreciated this move. Henry Kissinger now recognise India as a major power of
South Asia. The US decision of December 1973 to write off nearly ⅔ of
accumulated PL-480 funds further encouraged the chances of improvement in
relations. But again there was interruption due to following

-sharp exchange b/t both the countries over Vietnam

-CIA activities in Diego Garcia

-resumption of US military supply to Pakistan

In 1974 Henry Kissinger visited India and both the countries signed an agreement
for the establishment of Joint Indo-US Commission on
Economic,Commercial,Scientific,Technological,Educational and Cultural
Cooperation, through it both decided to extend their mutual cooperation in these
spheres

Detente,end of Vietnam war in 1973, resumption of economic aid further

strengthened the chances for the development of good relations.
1977-1979
Genuine Non-alignment: Morarji Desai and Atal Bihari Vajpayee expressed their
commitment to Genuine Non-alignment which means a desire to eliminate the tilt
with USSR i.e to abandon the principle of Mrs Gandhi’s Congress Government

During President Carter visit to India sharp differences emerged on the issue of
NPT. In 1978 M.Desai visited US and tried to secure help. America was,at that,
time delaying the supply of enriched uranium for use in the Tarapore plant,
President Carter assured PM Desai that US would try its best to honour her
commitments

During this period relations could make only limited head way
1980-1984 Mrs Indira Gandhi-Regan
Soviet Intervention in Afghanistan: India showed her unwillingness to condemn
USSR because it felt that Soviet intervention had come as a result of attempts of
certain other nations to secure installation of anti-communist anti soviet regime in
Afganistan. India believed that condemnation of USSR and supply of arms to
Afgan guerrillas could not help the resolution of Afgan crisis. India want peaceful
resolution and due to this was not ready to support US view