“We believe (that) if it is (the) GOI (Government of India) position that negotiations (on) re demilitarization (are) merely “beating of dead horse” as Bajpai says, good faith should impel (the) GOI (to) so inform (the) UNRIP in which case entirely (a) new situation would be created. It should be understood that if (the) GOI considers (the) demilitarization plan dead, and likewise other commitments it has entered into by accepting two UNCIP res(olutions), (the) GOP (Government of Pakistan) does not. Graham has indicated in his report that (the) GOP has accepted all 12 proposals (with certain qualifications re(garding) character of forces to be withdrawn or disbanded). Pakistanis over (a) three-year-period have consistently agreed to various UN suggestions for settlement. (The State) Dep(artment) believes (that) it would be (a) mistake with effects extending beyond (the) Kashmir dispute for (the) SC (Security Council) or (the) UNRIP (to) accept responsibility (for the) abrogation (of) international agreements which should clearly rest with that party which (is) not now prepared (to) implement them.
(The State) Dep(artment) has at no time ruled out partition as (a) possibly eventual solution if peaceably agreed to by both parties but is convinced that (the) Dept and its rep(resentative)s should at this time refrain from any action which might be interpreted by (the) GOI as present encouragement of partition talk. In our view, talk of partition (is) clearly (a) matter of timing and we feel (that) Graham and parties are (the) only ones who can determine (the) proper moment for initiating such talk.
(With regard to a) possible discussion of partition we have indicated to Graham our belief (that) it (is) unnecessary for (the) SC (to) broaden his terms of ref(erence) as we believe his authority under (the) March 30 res(olution) is sufficient authority (for) him make any proposals he deems necessary toward (the) solution (of the) Kashmir question. (The) March 30 res(olution) appointed Graham (the) successor (of) Dixon and as such he has all (of) Dixon’s authority. Graham has indicated (on) several occasions that if both parties indicate (a) willingness (to) discuss partition he will assist in (the) mediating role.
(The State) Dep(artment) understands (that) Graham does not propose (to) return (to the)sub-continent but plans (to) remain in NY for (the) next phase (of) negotiations unless parties suggest (an)agreed alternative place.