NEW DELHI:The most shocking fact that emerges in The Sunday Standard investigation is that officers in Nehru’s government were directly selected by officials of both Ford and Rockefeller foundations to participate in research projects abroad. Their travel and boarding and lodging expenses were taken care of by the sponsors. Some officials in Nehru’s regime who protested the penetration of foreign donors, including the Ford Foundation and the Rockefeller Foundation into the highest echelons of the Indian government, suggested strong measures to rein in these agencies but were not allowed due to some mysterious “political implications”, according to a note to the Finance Ministry from S Dutt, the Foreign Secretary at that time.
Much before the Narendra Modi government, D P Karmarkar—the Health Minister in Nehru’s Cabinet—blew the whistle on the spreading influence of foreign funding agencies in India during the 1950s. He asked the Ministry of External Affairs about what the procedures adopted by the government to allow foreign donors to operate in India were? Karmarkar was concerned that the Rockefeller Foundation directly lured officials from his ministry with hefty stipends and free junkets. Dutt noted in his file on June 23, 1958, that when the health minister tried to suggest that the government intervene in the matter of unbridled foreign funding, the terse reply from funding agencies was “take it or leave it”. A miffed Dutt also directed his officers and the Ministry of Finance to search and produce the papers related to the registration of foreign funding agencies. On June 27, 1958, a director in the MEA replied saying they were not aware of any basic agreement setting out the terms and conditions and procedures regarding the functioning of the Rockefeller and Ford foundations. The note with The Sunday Standard reveals that no files related to these NGOs were found with even the Ministry of Finance as all rules that govern foreign funding were not applicable to the two foundations. Even today, the situation remains basically unchanged.
“This procedure does not apply to assistance from foreign agencies like the Ford and Rockefeller Foundations,” the note states.
REIGN OF FEAR
The MEA note signed by Director (AMS) went on to say, “Since, however, the Rockefeller as well as the Ford Foundation have unbridled freedom of action in this country, it is for consideration whether the government should enter into basic agreements setting out the principles and procedures to be followed in giving aid and fellowships ... They may not agree to their discretion being fettered in the matter of giving aid to non-governmental bodies and individuals. We may perhaps request Joint Secretary (FA) in the Department of Economic Affairs to send for the representatives of the two Foundations (Separately of course) and find out their reactions.”
Responding to his boss, S Dutt’s query on the operations of the two agencies, a senior officer in MEA, Naidu on July 1, 1958, noted on file that their grant could be political tools and the ministry must support the health Minister and the Department of Economic Affairs in their attempt to control the financial aid given by all foreign foundations.
“So far as the American division is concerned, we have been watching with anxiety the increasing penetration and power of foundations like the Ford Foundation, Rockefeller and Nuffield in governmental spheres and would welcome the control and regulation of their activities. In their direct selection of scholars and grantees in India, the choice of these foundations is not politically disinterested. They would prefer to have those who are anti-Communist and those with a bias towards the American way of thought,” he further wrote in the note forwarded to the foreign secretary. Naidu also forwarded a letter from B V Radhakrishnan, the then deputy secretary in the Ministry of Finance, revealing the names of bureaucrats and senior officials who were directly offered fellowships by the Rockefeller Foundation without informing the government. PPI Vaidyanathan, an ICS and secretary, Food and Agriculture Department, was offered a study tour in the US. L B Singh, Director Horticulture, was offered a travel fellowship to visit London, Paris, New York, Washington, Philadelphia, Ithacca, Buffalo, Niagra Fall, East Lansing, Chicago, Gainesville, Leaseburg, Lake Alfred and Cypress Garden. Radhakrishnan wrote that three research assistants, A T Nagarajan, Shyamcharan Srivastava and Amir Singh, IARI Delhi were also selected by the Rockefeller Foundation fellowships without any intimation to the government, which came to know about it only when they needed permission to travel abroad.
Radhakrishnan noted, “It is highly embarrassing to negative a proposal for a travel grant offered by a foreign aid agency at a stage at which they have completed all their formalities.”
“But to avoid situations like this in future, we must now clearly advise the Rockefeller Foundation (and Ford Foundation) who are the only two non-official foreign aid agencies who are offering grants direct to government and private institutions. We should invite separately the representatives of both the Ford Foundation and Rockefeller Foundation for a personal discussion and follow it by a formal communication,” he further said recommending that government must bring the two Foundations under some kind of formal arrangement under the law of the land.
BABUS PANIC
It is evident from the review of subsequent communications between Dutt and the Ministry of Finance that despite a section of bureaucrats feeling agitated over the free run given to Ford and Rockefeller foundations, the government headed by Nehru preferred a status quo. “I agree with the suggestion in the notes of the Economic Affairs Ministry the position should be clarified in personal discussions with the representatives of the Ford Foundation and the Rockefeller Foundation. However, a departure from a practice which have allowed in the past has a political implication,” Dutt wrote in his letter dated July 3, 1978, to N C Sengupta, Joint Secretary in the Department of Economic Affairs.
Nevertheless, the foreign secretary suggested that the government must have at least some kind of informal arrangement so that it is in the loop when foreign funds are being used for grants and scholarsips given to government officials. On October 17, 1958, it was proposed that Ford and Rockefeller foundations will first approach the government before issuing any grant and approaching government officials to send them on foreign study tours.
FAMILY INTERVENTION
While, the officials in India were preparing to rein in Ford and Rockefeller foundations, a telegram from the Indian Embassy in Washington asked them to avoid any formal regulation for the foreign funding agencies. The telegram dated December 1, 1958, was from B K Nehru, Indira Gandhi’s cousin and the Commissioner General for Economic Affairs of Indian Embassy in Washington.
“Have discussed Rockefeller procedure with Dean RUSK (President of the foundation). Understand informal arrangements for prior consultation with Government of India might be feasible but any insistence on formal clearance by Government would cause difficulties,” the telegram stated.
This triggered panic in the Ministry of External Affairs and the foreign secretary told officers to consult the ministry before moving ahead on the issue as Nehru had also noted on it.
“This matter has political implications and we should like to be consulted before any decision is taken. PM has noted on it recently,” Dutt wrote.
In the same file is a a handwritten note by Joint Secretary (W) “No Action (I shall explain the background to Deputy Secretary and Under Secretary. What time do we meet?”
Interestingly, when the controversy was brewing, Dean Rusk wrote a personal letter on December 16, 1958, to UGC chief C D Deshmukh, who had earlier served as finance minister in Nehru’s Cabinet during 1950-56, seeking his advice on what to do in view of strong objections emanating from a section of the Indian bureaucracy.
“You will recall our conversation during my October visit in India about some of the operating difficulties which the Rockefeller Foundation has encountered with respect to its fellowships and grants. I am not at all confident that the situation has been clarified to the satisfaction of both sides.”
“I wonder if you would be willing to give me personal advice as to whether it would be wise for me to take the initiative in suggesting the negotiation of such an exchange of letters. We would be willing, as a starter, to draft a possible letter from the Foundation to the Government of India and discuss it with your ambassador and Mr. BK Nehru in Washington.”
PRESSURE TACTICS
Subsequently, Deshmukh forwarded a personal note along with Rusk’s letter on December 31, 1958, to N R Pillai, secretary general, Ministry of External Affairs.
“I enclose a copy of a letter (on a purely personal basis) I have received from Mr. Dean Rusk of the Rockefeller Foundation. I have had a word with you about this matter and do not myself anticipate any difficulties that cannot be smoothened out,” Deshmukh wrote.
The minutes of a meeting held on January 27, 1959, between Dutt, A H Moseman, Dr Ralph W Cummings from Rockefeller and N C Sen Gupta, joint secretary, Ministry of Finance, reveal that political pressure bailed out the foreign donors. Says the minutes, “Foreign secretary explained that he did not personally think it is necessary to have any regular agreement to be executed between the government of India and the Foundation.” It was evident that Dutt was changing his tune.
“Speaking for himself he (foreign secretary) said that it would be sufficient if informally a procedure could be arranged whereby the Joint Secretary of the Foreign Aid division of the Ministry of Finance, Department of Economic Affairs, would be informed of the proposals which were being concerned by the Foundation” the notings continued.
It was agreed that Sen Gupta and DrCummings would jointly prepare a tentative draft procedure which foreign secretary might consider. Thereafter, it would be examined whether it would be necessary for the Foundation authorities to have further discussions in India.
Subsequently, Sen Gupta prepared a draft note on February 10, 1959, for the procedures before grant is finalized. But it wasn’t acceptable to the Rockefeller Foundation, which asked for amendments. The final draft was suggested by Rusk: “It will be sufficient if, before the Foundation takes final action, it consults the foreign aid division of the Department of Economic Affairs.”
NEHRU BACKTRACKS
After alleged political pressure allowed a status quo on the foreign donors issue, Nehru’s Health Minister Karmarkar again flagged the issue on July 2, 1959. Karmarkar told Nehru that the logical result of the procedure as suggested would be to encourage our people to seek the favour of a representative of the Rockefeller Foundation, which is hardly consonant with our self respect.
The letter rattled Nehru, who forwarded the letter to the foreign secretary on the same day, claiming he never gave such an approval.
“I find from some of the papers that the External Affairs Ministry has agreed, apparently under some pressure from the Rockefeller Foundation, to a certain procedure for the selection of individuals for scholarships etc. It is stated also that this procedure had the approval of the Prime Minister and the Finance Minister. I have no recollection of this matter,” Nehru wrote.
However, the foreign secretary in a note dated July 6, 1959, countered Nehru’s claim saying he himself approved the draft for informal arrangements.
“I would invite PM’s attention to my note of February 2, 1959, flagged H, in the External Affairs Ministry’s file. The letter which the Economic Affairs Ministry wrote to the Representative of the Rockefeller Foundation in India is flagged G. This letter was approved in draft by the Prime Minister. I would also invite PM’s attention to the record of my talk with Dr. Moseman and Dr. Cummings, flagged L,” The foreign secretary said suggesting that Nehru should let the arrangement continue as it was decided after long consultations.
An officer in PMO noted that “I agree with FS” on July 19, 1959. Subsequently, Nehru signed the note saying “We should watch and see how matters develop. Health minister should see the papers. Health minister too signed the note on July 26, 1959 “The Minister of Health has seen.”
VAJPAYEE CRACKS DOWN
And, that is how the entire move to bring Ford and Rockefeller Foundation under Indian regulations was quietly buried for 42 long years before NDA-1 headed by Atal Behari Vajpayee released the jinn out of the bottle in 2001. Adarsh Kishore, additional secretary in the Ministry of Finance, wrote to all external agencies including Ford Foundation, DFID and USAID, asking them to stop approaching government officers directly and instructed they route the file through the Department of Economic Affairs. “No direct invitation should be sent to any individual officer,” Kishore said. He also warned foreign funding agencies to avoid approaching chief ministers directly as the government has realised the extent of their penetration across the country.
“We have been constrained to note that some external agencies have corresponded directly with Chief Ministers and ministers of state governments. This practice needs to be discontinued,” Kishore added.
Almost 11 years later when, The Sunday Standard exposed the Ford Foundation funding scheme related to legislative assistance to MPs, Shaktikanta Das (present revenue secretary and then additional secretary, Department of Economic Affairs) in February 2013 raised the issue again with foreign funding agencies. At a time when the US and India are coming together against China as a geopolitical necessity, the future role of the foundations in influencing policy will be under severe scrutiny.
