WASHINGTON: Drastic cuts made by the Congress in the US Foreign Aid Bill this year are likely to tell on American economic aid to India, Pakistan and many other developing countries.

After unusually bitter and sometimes unbecoming wrangles on Capitol Hill, the US House of Representatives passed the Foreign Aid Bill slashing one-and-a-half billion dollars of the original aid estimate submitted by the late President Kennedy.

One of the major cuts made by the Congress was in the Development Loan Fund which provides India and Pakistan with most of American contributions to their five-year plans.

From the Administration’s point of view the DLF sanction made by the Congress this year is paltry when judged by the fact that the US contributions to the current year of India and Pakistani plans alone stand at $769 million. Congressional approval of $687 million for DLF during the current fiscal year is meant for all developing countries with the exception of Latin American states.

There is a general belief here that the deep cut made in DLF by Congress would bring about an across-the-board cut in American aid to most developing nations with the exception of some distressed areas.