Under the terms of an agreement signed in New Delhi Aug 16, the United Kingdom agreed to lend a further 10 million to assist India in financing the final phase of her second Five Year Plan.
GV Finance Ministry in New Delhi
MV Mr L.K. Jha and RT. Hon. Malcolm MacDonald at table
GV Documents exchanged
CU Mr. MacDonald signing
CU Indian looks on
MV MacDonald and Jha in happy mood
CV Indian members look on
CU Jha and MacDonald shake hands
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Background: Under the terms of an agreement signed in New Delhi Aug 16, the United Kingdom agreed to lend a further 10 million to assist India in financing the final phase of her second Five Year Plan. The new loan brings British Government aid to India since 1958 to GBP75,500,000.
One third of the new loan is repayable in 10 years and the balance in 20 years.
After signing on behalf of the United Kingdom, Mr Malcolm MacDonald, Britain's High Commissioner in India, said the British Government regarded it as their high duty to help developing Commonwealth countries in their vital task of raising their people's living standards.
Replying, Shri L.K. Jha, Secretary to the Indian Ministry of Economic Affairs, said India's requirements for external assistance during the Third Five Year Plan - 1961-1966 - will be much larger than during the Second Plan in which Britain had helped finance projects like the Durgapur Steel Plant, which have been identified in the public mind as joint Indo-British enterprises.