Covert action capability is an indispensable tool for any State  having external adversaries. Its purpose is not just collection of  intelligence, but the protection of national interests and the  safeguarding of national security through deniable actions of a  political, economic, para-diplomatic or para-military nature. A State  resorts to covert action if it finds that its national interests cannot  be protected or its national security cannot be safeguarded through  conventional political, economic, diplomatic or military means or if it  concludes that such conventional means are not feasible.
Any intelligence agency worth its salt will have a covert action  capability ready for use, when necessary. The Governments of some  countries openly admit the availability of such a capability in their  intelligence agencies, but not the details of their operations, which  have to be secret and deniable. Others don’t admit even its existence.
In India too, the IB, under the foresighted leadership of the late  B.N.Mullik, its second Director, had a limited covert action capability  for possible use. The covert action division of the IB played a notable  role in the then East Pakistan to counter the activities of the ISI in  India’s North-East.
The R&AW had inherited from the IB its intelligence collection  and covert action capabilities relating to Pakistan and China. These  were not up to the standards of the intelligence agencies of the Western  countries and Israel.
In India, one tends to think that Pakistan’s use of terrorism against  India started in 1989 in Jammu and Kashmir (J&K). It is not so. It  started in 1956 in Nagaland. The ISI trained the followers of Phizo, the  Naga hostile leader, in training camps set up in the Chittagong Hill  Tracts (CHT) of East Pakistan. It also provided them with safe  sanctuaries in the CHT from which they could operate in the Indian  territory through northern Myanmar.
In the 1960s, it started providing similar assistance and sanctuaries  to the Mizo National Front (MNF) headed by Laldenga in the CHT. The  ISI’s set-up in East Pakistan also enabled the Naga and Mizo hostiles to  establish contact with the Chinese intelligence. This paved the way for  the training of the Naga and Mizo hostiles in training camps set up by  the Chinese intelligence in the Yunnan province of China.
It was partly to put an end to the activities of the ISI in India’s  North-East from East Pakistan that Indira Gandhi decided to assist the  Bengali-speaking people of East Pakistan in their efforts to separate  from Pakistan and achieve an independent State to be called Bangladesh.  This was in the wake of the widespread disturbances in East Pakistan in  the beginning of 1971 following the refusal of the military regime of  Pakistan headed by Gen. Mohammad Yahya Khan to honour the results of the  December,1970,general elections in which the Awami League of Sheikh  Mujibur Rahman won a majority in the Pakistani National Assembly.
When the people of East Pakistan rose in revolt in March,1971, the  R&AW was two and a half years old. It was still in the process of  finding its feet as a full-fledged external intelligence agency, with a  hardcore of professional intelligence officers capable of operating  under cover in foreign territory as well as across the border in the  neighbouring countries.
The poor sense of communications security in the Pakistani Armed  Forces was evident from the careless use of telephones by senior  officers, including Gen.Yahya Khan, for conveying instructions to their  officers in East Pakistan.
The R&AW had inherited from the IB its intelligence collection  and covert action capabilities relating to Pakistan and China. These  were not up to the standards of the intelligence agencies of the Western  countries and Israel. They had many inadequacies, which had become  evident during the Chinese invasion of India in 1962, during the  Indo-Pakistan war of 1965 and during the counter-insurgency operations  in the North-East.
The late Rameshwar Nath Kao, who headed the external intelligence  division of the IB, was appointed by Indira Gandhi as the head of the  R&AW when it was formed on September 21,1968. In the first few  months after its formation, he gave it two priority tasks— to strengthen  its capability for the collection of intelligence about Pakistan and  China and for covert action in East Pakistan.
A little over two years is too short a time to build up an effective  covert action capability, but the R&AW managed to do so. It went  into action the moment Indira Gandhi took the decision to help the  people of East Pakistan achieve their independence from Pakistan.
The 1971 war against Pakistan was not a war won by India alone. It  was a war jointly won by India and the people of East Pakistan. It would  be wrong to project that India was the architect of an independent  Bangladesh. India’s role was more as a facilitator than as a creator.
Without the desire and the will of the people of East Pakistan to be  independent, there would have been no Bangladesh. Their sacrifices for  their cause were immense. How many of them were brutally killed by the  Pakistan Army! How many of the Bengali intellectuals were massacred by  the Pakistan Army and by terrorist organizations such as Al Badr and Al  Shams created by the ISI! It is their sacrifice, which laid the  foundation for an independent Bangladesh. What India did under the  leadership of Indira Gandhi was to make sure that their sacrifices were  not in vain.
The Indian Armed Forces under the leadership of Field-Marshal (then  General) S.H.F.J. Manekshaw and the Border Security Force (BSF) headed  by the late K.F.Rustomji overtly and the R&AW and the IB covertly  ensured this. But, they would not have been able to succeed as well as  they did without the political leadership provided by Indira Gandhi and  the phenomenal work done by the civilian officials of West Bengal, Assam  and Tripura in organizing humanitarian relief for the millions of  refugees who crossed over into India from East Pakistan.
Indira Gandhi’s dramatic decision to ban all Pakistani flights over  India to East Pakistan in retaliation for the hijacking of an Indian  Airlines flight by two members of the Jammu and Kashmir Liberation Front  (JKLF) to Lahore in January,1971, paved the way for the ultimate  victory in East Pakistan. When the Pakistani aircraft tried to fly round  India over the sea by availing of re-fuelling facilities in Sri Lanka,  Indira Gandhi pressurized the Government of Sri Lanka to stop providing  the re-fuelling facilities. This greatly weakened the ability of the  headquarters of the Pakistani Armed Forces in West Pakistan to send  reinforcements to East Pakistan and to keep their garrisons in East  Pakistan supplied.
The R&AW’s role was five-fold: Provision of intelligence to the  policy-makers and the armed forces; to train the Bengali freedom  fighters in clandestine training camps; to network with Bengali public  servants from East Pakistan posted in West Pakistan and in Pakistan’s  diplomatic missions abroad and persuade them to co-operate with the  freedom-fighters and to help in the freedom struggle by providing  intelligence; to mount a special operation in the CHT against the  sanctuaries and training camps of the Naga and Mizo hostiles;and to  organize a psychological warfare (PSYWAR) campaign against the Pakistani  rulers by disseminating reports about the massacres of the Bengalis in  East Pakistan and the exodus of refugees.
Indira Gandhi’s dramatic decision to ban all Pakistani flights over  India to East Pakistan in retaliation for the hijacking of an Indian  Airlines flight, paved the way for the ultimate victory in East  Pakistan.
The flow of intelligence to the policy-makers from the R&AW and  the IB was continuous and voluminous. This was facilitated by the  co-operation of many Bengali public servants of East Pakistan and by the  poor communications security of the Pakistani Armed Forces. One of the  first acts of Kao after the coming into being of the R&AW was to set  up a Monitoring Division headed by a distinguished retired officer of  the Army Signal Corps to collect technical intelligence (TECHINT) from  Pakistan and China and a Cryptography Division, headed by a cryptography  expert from the IB. While the performance of the Monitoring and  Cryptography Divisions in respect of China was unsatisfactory, they did  excellent work in intercepting electronic communications within West  Pakistan as well as between West and East Pakistan and in repeatedly  breaking the codes used by the Pakistani authorities for their  communications.
The poor sense of communications security in the Pakistani Armed  Forces was evident from the careless use of telephones by senior  officers, including Gen.Yahya Khan, for conveying instructions to their  officers in East Pakistan—-without even taking basic precautions such as  the use of scrambling devices to make their conversations  unintelligible to anyone intercepting them. Almost every day, Indira  Gandhi and others entrusted with the conduct of the war had at their  disposal extracts from the telephonic conversations of Yahya Khan and  others with their officers in East Pakistan.
1971 in East Pakistan was a dream situation for professional  intelligence officers. Often, they did not have to go after  intelligence. It came after them. There was such a total alienation of  the people of East Pakistan that many were eager and willing to convey  intelligence to their own leaders as well as to the Indian intelligence  agencies. Co-operation with the Indian intelligence agencies was looked  upon by them as their patriotic duty in order to facilitate the  liberation of their country.
The IB before 1968 and the R&AW thereafter had built up a network  of relationships with many political leaders and Government officials  of East Pakistan. They were helped in this networking by the sense of  humiliation of the Bengali leaders and officials at the hands of their  West Pakistani rulers. This networking enabled the R&AW and the  leaders and officials of East Pakistan to quickly put in position the  required infrastructure for a liberation struggle consisting of a  parallel government with its own fighters trained by the Indian security  forces and its own bureaucracy.
The only sections of the local population, who were hostile to India  and its agencies, were the Muslim migrants from Bihar. These Bihari  migrants were loyal to their West Pakistani rulers and co-operated with  them in carrying out the brutal massacre of the Bengalis. However, since  their number was small, the Bihari migrants could not come in the way  of the liberation movement.
The main hostility to India was from the US and China. Neither of  them wanted India to succeed in what they perceived as its designs to  break up Pakistan.
1971 also saw the coming into being of the R&AW’s Psychological  Warfare (PSYWAR) Division, euphemistically called the Information  Division. Media professionals from the Ministry of Information and  Broadcasting as well as from the Army were given by Kao the task of  ensuring that international spotlight was kept focused on the  brutalities being committed by the Pakistan Army in East Pakistan and  the resulting exodus of millions of refugees into India.
They did excellent work, but if the international community became  aware of the seriousness of the ground situation and of the compulsions  on India to act, the real credit for it should go to Indira Gandhi. She  was a born Psywarrior. Through her travels across the world to draw  attention to the situation in East Pakistan and the bordering States of  India, she managed to create an atmosphere, which would not have been  hostile to the ultimate Indian intervention—-even if it was not  supportive of it.
The main hostility to India was from the US and China. Neither of  them wanted India to succeed in what they perceived as its designs to  break up Pakistan. They had convinced themselves that what they saw as  the Indian designs was not the immediate outcome of the disturbances in  East Pakistan and the resulting exodus of refugees. Instead, they tended  to agree with the military rulers of Pakistan that the disturbances and  the refugee exodus were the outcome of the Indian designs. India’s  perceived closeness to Moscow under Indira Gandhi added to their  hostility.
Those were the days of the first covert contacts between the  administration of President Richard Nixon in Washington DC and the  regime of Mao Zedong in Beijing. These contacts were facilitated by the  military rulers of Pakistan. Yahya Khan earned the gratitude of both the  US and China by making possible the first secret visit of Henry  Kissinger, Nixon’s National Security Adviser, to Beijing in July,1971,  for talks with Mao and his associates.
To counter the perceived Indian designs, the Chinese stepped up the supply of arms and ammunition to Pakistan.
The developing Washington-Beijing understanding was mainly directed  against Moscow, but India too, which was perceived by both the US and  China as the USSR’s surrogate, came under their scan. There was an  undeclared convergence of views between Washington DC and Beijing that  Pakistan should be protected from India and that India should not be  allowed to emerge as the dominating power of the South Asian region.
In view of the widespread revulsion across the world over the  brutalities of the Pakistan Army in East Pakistan, both Nixon and Mao  realized that there was not much they could do to help Pakistan retain  its control over East Pakistan. Even while mentally reconciling  themselves to the inevitability of Pakistan losing its eastern wing,  they were determined to thwart any designs of Indira Gandhi to break up  West Pakistan after helping the Bengali people of East Pakistan in the  liberation of their homeland. They had convinced themselves that Indira  Gandhi had such designs and that after Bangladesh, she would turn her  attention to Balochistan on the Iranian border, where there were already  signs of growing alienation of the people against what they perceived  as the Punjabi domination of their homeland.
To counter the perceived Indian designs, the Chinese stepped up the  supply of arms and ammunition to Pakistan. They also expedited the  construction of the Karakoram Highway, which would link the road network  of the Xinjiang region of China with that of Pakistan, and thereby  enable the Chinese Armed Forces to intervene in support of Pakistan, if  necessary, in future. However, this could be completed only in 1978. 
The  Nixon Administration colluded with the Yahya regime by initiating a  covert action plan for the destabilization of India. This plan envisaged  the encouragement of a separatist movement among the Sikhs of India’s  Punjab for an independent State to be called Khalistan.
There was a Sikh Home Rule Movement headed by one Charan Singh Panchi  in the UK even before 1971, but it had practically no support from the  Sikh diaspora and was ignored by the international community and media.  In 1971, one saw the beginning of a joint covert action operation by the  US intelligence community and Pakistan’s ISI to create difficulties for  India in Punjab. US interest in this operation continued for a little  more than a decade and tapered off after the assassination of Indira  Gandhi by two of her Sikh security guards on October 31,1984.
In 1971, as Indira Gandhi and the R&AW’s Psywar Division stepped  up their campaign against Pakistan on the question of the violation of  the human rights of the people of East Pakistan, one saw the beginning  of an insidious Psywar campaign jointly mounted by the US intelligence  and the ISI against the Indira Gandhi Government, with dissemination of  stories about the alleged violations of the human rights of the Sikhs in  Punjab.
After Indira Gandhi came back to power in the elections of 1980, the  US suspected that India supported the presence of the Soviet troops in  Afghanistan and that the Indian intelligence was collaborating with its  Afghan counterpart.
Dr.Jagjit Singh Chauhan, a Sikh leader of Punjab with not much  following, went to the UK, took over the leadership of the Sikh Home  Rule movement and re-named it the Khalistan movement. The Yahya regime  invited him to Pakistan, lionized him as the leader of the Sikh people  and handed over him some Sikh holy relics kept in Pakistan. He took them  with him to the UK and tried to use them in a bid to win a following in  the Sikh diaspora in the UK. At a press conference at London in  September,1971, he gave a call for the creation of an independent  Khalistan.
He also went to New York, met officials of the United Nations and  some American journalists and voiced allegations of the violation of the  human rights of the Sikhs by the Indira Gandhi Government. These  meetings were discreetly organized by officials of the US National  Security Council Secretariat then headed by Kissinger.
With American and Pakistani encouragement, the activities of Chauhan  continued till 1977. After the defeat of Indira Gandhi in the elections  of 1977 and the coming into power of a Government headed by Morarji  Desai, Chauhan abruptly called off his so-called Khalistan movement and  returned to India.
After Indira Gandhi came back to power in the elections of 1980, the  US suspected that India supported the presence of the Soviet troops in  Afghanistan and that the Indian intelligence was collaborating with its  Afghan counterpart. Chauhan went back to the UK and resumed the  Khalistan movement.
In addition to stepping up the supply of arms and ammunition to the  Pakistani Armed Forces and expediting the construction of the Karakoram  Highway, the Chinese also wanted to destabilize India’s North-East by  helping the Naga and Mizo hostiles in their insurgencies against the  Government of India. However, their interest in the North-East was not  the outcome of the events of 1971 in East Pakistan. It began in 1968.
While the intelligence agencies of the US and Pakistan co-operated  with each other in creating difficulties for India and Indira Gandhi in  Punjab, the ISI and the Chinese intelligence co-operated with each other  in creating difficulties for them in India’s North-East. The Pakistani  aim in destabilizing the North_East was to keep the Indian security  forces preoccupied with counter-insurgency duties in the North-East, in  the hope of thereby reducing any Indian threat to their position in East  Pakistan. The Chinese aim was, in addition to helping Pakistan retain  control over its Eastern wing, to weaken the Indian hold in this area in  order to safeguard their own position in Tibet and to facilitate the  eventual achievement of their objective of integrating India’s Arunachal  Pradesh with Tibet.
Even as the Indian Army—ably assisted by the Air Force and the  Navy—was moving towards Dhaka , covert action units of the R&AW and  the Directorate-General of Security (DGS), which also came under Kao,  raided the CHT in order to put an end to the insurgency infrastructure  of the Naga and the Mizo hostiles. They found that the Nagas,  anticipating the raid, had already shifted their infrastructure to the  Burma Naga Hills area. The Mizos had not shifted, but they managed to  escape capture by the units of the R&AW and the DGS and crossed over  into the Chin Hills and the Arakan Division areas of Burma. Laldenga,  the head of the MNF, proceeded to Rangoon from where he was taken to  Karachi by the ISI. Apart from destroying the physical infrastructure of  the hostiles, the only other useful outcome of the raid was the capture  of all the documents kept in the MNF headquarters, which gave a lot of  valuable intelligence about the contacts of the MNF with the ISI and the  Chinese intelligence.
The Naga and the Mizo hostiles lost their safe sanctuaries, but their  manpower remained intact. However, the loss of the sanctuaries and an  important source of funds and arms and ammunition created doubts in the  minds of their leadership about the continued viability of their  insurgent movement. As will be discussed in a subsequent chapter, this  ultimately led to peace in Mizoram and partial peace in Nagaland.
The 1971 war and our counter-insurgency operations against the Naga  and the Mizo hostiles once again highlighted the importance of Northern  Burma from the point of view of the security of India’s North-East. To  explain this, I have to go back to my entry into the intelligence  community.
In the year before the 1962 war, the IB’s trans-border sources in the  North-East were repeatedly reporting about a tremendous increase in the  number of mules and Chinese muleteers in the Kachin State and the Burma  Naga Hills.
I joined the IB in July 1967. After my training, Kao, who then headed  the external intelligence division of the IB, told me that I had been  selected to head the Burma Branch. The branch was created after the  Sino-Indian war of 1962 and he felt that it was as important as the  branches dealing with Pakistan and China. He wanted me to acquire  expertise not only on Burma, but also on the Yunnan province of China.
I continued to be in charge of the Burma branch for nearly five years  — handling analysis as well as clandestine operations — and acquired  such expertise that people used to refer to me as ‘Burma Raman.’
After taking over, I thought I would familiarise myself with the  background to the creation of the Branch, and sent for the relevant  file. It was there that I saw a one para hand-written note by B.N.  Mullik, who was the Director of the IB at the time of the Chinese  invasion of India. The note had been recorded by him shortly after the  war with China had come to an end.
The note said: “I have discussed with the Prime Minister and the Home  Secretary. They have agreed that we must urgently create a Burma  Branch. It should start functioning from today without waiting for a  formal approval from Finance. Action for obtaining approval from Finance  may be taken separately.”
In order to understand why the Branch was created in such an urgency —  almost in panic — I then requisitioned all Burma-related files of 1962  and the years before from the Record Room (Archives).
From the various notings in those files, I noticed that Mullik and  others felt that the Indian Army was so badly taken by surprise in what  today is called Arunachal Pradesh because some Chinese troops had  entered Arunachal Pradesh not directly from the North, but from Yunnan  in the East.
They had clandestinely moved across the Putao region of the Kachin  state of Burma without being detected by the IB. The Kachin State and  the Burma Naga Hills were a no-man’s land in those days, with  practically no Burmese administrative or military presence outside the  towns of Myitkyina and Putao. The Chinese had taken advantage of this.
I then went through all the pre-1962 source files in order to  understand how the IB’s sources in North Burma had missed this. In those  days, whatever roads were there in the Kachin State and the Burma Naga  Hills had been blown up by the anti-Rangoon insurgents. The only way of  moving about and carrying goods from one place to another was on the  back of mules. North Burma had a large Chinese population of Yunanese  origin. 
Many of them earned their living as muleteers.
In the year before the 1962 war, the IB’s trans-border sources in the  North-East were repeatedly reporting about a tremendous increase in the  number of mules and Chinese muleteers in the Kachin State and the Burma  Naga Hills.
Towards the end of 1968 and throughout 1969, R&AW sources in the Kachin State of Burma started reporting…
The then officers of the IB had sent out a wake-up call by drawing  the attention of the policy-makers to the national security implications  of this development in the areas adjoining the Indian border in  Nagaland and Arunachal Pradesh. But they were ridiculed and accused of  nursing imaginary fears.
It was realised only belatedly that these muleteers were actually  Chinese Army and intelligence officers based in Yunnan, who had taken up  position across our border in Burmese territory in the months before  the invasion. After the war was over, there was a steep drop in the  number of mules and Chinese muleteers in North Burma.
In 1968, the Governments of India and Burma agreed to set up a Joint  Commission for the Demarcation of the Indo-Burmese boundary except in  the northern and southern trijunctions.
Kao spoke to the then Foreign Secretary and persuaded him to include  me in the Commission under the cover of a Deputy Secretary of the  Ministry of Home Affairs dealing with the North-East.
By that time, Indira Gandhi had decided to bifurcate the IB and  create the R&AW under the charge of Kao. It was, therefore, decided  that I, along with the Burma Branch, would stand transferred to the  R&AW, but I would keep the late MML Hooja, the then Director, IB, in  the picture regarding my work.
Our concern was that the continued intrusions might be linked to the  developments in East Pakistan and might have been intended to deter any  Indian action in East Pakistan.
Kao, therefore, took Hooja’s concurrence for my being the joint  representative of the R&AW and the IB in the Commission. My  membership of the Commission gave me an opportunity to travel frequently  and widely in remote areas of North Burma.
The Commission used to meet alternately in India and Burma. Normally,  joint aerial photography of the border areas is the starting point for  the demarcation work. At a meeting of the Commission in Rangoon, the  Indian delegation proposed that such aerial photography be undertaken.  We added that since the Burmese Air Force might not have a plane capable  of good aerial photography, we would be happy to request the Indian Air  Force to do this job for the Commission and that we would not charge  the Burmese Government for it. A Burmese officer could be attached to  the IAF for guiding in the aerial photography mission, we said.
The Burmese replied that they already had aerial photographs of the  Indo-Burma bordering areas, and that we could use them as the starting  point.
The photographs were of excellent quality. Totally surprised, we  asked them how they took them since their Air Force did not have a plane  capable of taking such aerial photography. To our shock, they replied:  “Our Chinese friends helped us. We sought their help. They sent a plane  of their Air Force to fly over the Indo-Burmese border to take the  photographs.”
When we strongly protested against their allowing a Chinese Air Force  plane to fly over our sensitive border areas and take photographs  without our permission, the Burmese replied: “We will never let down our  Indian friends. We did take your prior permission.”
They then showed us a note from the then Indian Ambassador in Rangoon  to their Foreign Office, stating that the Government of India would  have no objection to their requesting the Chinese for assistance in the  aerial photography.
On my return to Delhi, I briefed Kao about this, and suggested that  he should advise the Prime Minister to order an enquiry into how a  matter having serious national security implications was handled so  casually, and fix responsibility.
Kao replied: “Raman, the R&AW has only recently got going. We  will need the goodwill of the Ministry of External Affairs for  functioning in the Indian embassies abroad. By raising this with the  Prime Minister, we will unnecessarily be creating hostility to the  R&AW in the MEA. I will mention this breach of security to the  Foreign Secretary and let him decide what further needs to be done.”  Nothing further was done.
Towards the end of 1968 and throughout 1969, R&AW sources in the  Kachin State of Burma started reporting that taking advantage of the  absence of Burmese military presence in the areas of the Kachin State to  the East and the South-East of Myitkyina and also in the Bhamo  area—-all adjoining the Yunnan border— a large number of Chinese troops  from Yunnan had infiltrated into the Burmese territory in these areas  and set up camps. The sources also reported that the Burmese Government  had not taken any action against these intrusions.
One of my tasks as the head of the Burma branch was to closely  monitor these intrusions should there be indications of these troops  moving further Westwards towards the Indian border. Some of these troops  went back into Yunnan in 1970, but others stayed put in Burmese  territory till the 1971 war in East Pakistan was over.
Our concern was that the continued intrusions might be linked to the  developments in East Pakistan and might have been intended to deter any  Indian action in East Pakistan. But, further enquiries indicated that  this was not so.
After the Chinese Communists extended their control over Yunnan  post-1949, the surviving remnants of the anti-Communist Kuomintang (KMT)  troops had crossed over into the Kachin and Shan States of Burma and  set up bases there. Beijing was exercising pressure on Rangoon to expel  them from Burmese territory. We assessed that the troop intrusions into  the Burmese territory were meant to reinforce that pressure and had  nothing to do with the developments in East Pakistan.
There was concern in the intelligence communities of India as well as  the US that the Chinese might establish their control over North Burma  by exploiting the weaknesses of the Burmese Government. This did not  happen. The Chinese troops withdrew from the Burmese territory in the  1970s after the KMT remnants were airlifted to Taiwan.
Two questions often posed are: Indira Gandhi could have at least  ordered the liberation of Pakistan-Occupied Kashmir (POK) and the  Northern Areas (Gilgit and Baltistan), which India considers as an  integral part of its territory under illegal Pakistani occupation. Why  she did not do so?
This shared concern brought about a close working relationship  between the R&AW and the US Central Intelligence Agency (CIA) in  North Burma. Thus, one saw the curious spectacle of the US intelligence  colluding with the ISI in assisting the Khalistan movement in Indian  Punjab, with the Chinese intelligence for preventing a break-up of West  Pakistan by India and with the Indian intelligence for preventing a  possible Chinese take-over of North Burma. This may appear strange and  incomprehensible, but such things are normal in the intelligence  profession.
As the war in East Pakistan was reaching its climax, Nixon,  reportedly as advised by Kissinger, ordered the USS Enterprise, a  nuclear-powered aircraft carrier of the US Navy, to move into the Bay of  Bengal. It reached there on December 11,1971. What was the purpose of  the movement? The generally accepted assessment held that it was meant  to convey a warning to India to stop the war after the liberation of  Bangladesh and not to break up West Pakistan. Pressure from the  policy-makers for more intelligence about the US intentions increased on  the R&AW.
The R&AW felt handicapped in meeting the demands for intelligence  about the movement of US ships and about the US intentions since it had  very little capability for the collection of hard intelligence about  countries other than India’s neighbours and its capability for the  collection of maritime intelligence was very weak. The follow-up action  taken to remove these inadequacies will be discussed in a subsequent  chapter.
Contrary to the fears of Pakistan, the US and China, Indira Gandhi  had no intention of breaking up West Pakistan. She knew it would be  counter-productive and antagonize large sections of the international  community, which appreciated the compulsions on India to act in East  Pakistan. Moreover, the only area of West Pakistan ripe for supportive  action was Balochistan, but it did not have a contiguous border with  India. 
Any Indian support could have been only by sea. This was not  feasible. Moreover, any support to the Baloch nationalists would have  sounded the alarm bells in Iran and antagonized the Shah of Iran. For  these reasons, the idea of a possible break-up of West Pakistan was not  even contemplated by her. Any intervention in West Pakistan would have  added to the feelings of humiliation of the Pakistani Armed Forces and  large sections of its people. This would not have been in the long-term  interests of India.
As the war ended, the R&AW and Kao were the toasts of the policy-makers.
Two questions often posed are: Indira Gandhi could have at least  ordered the liberation of Pakistan-Occupied Kashmir (POK) and the  Northern Areas (Gilgit and Baltistan), which India considers as an  integral part of its territory under illegal Pakistani occupation. Why  she did not do so?
India had taken 93,000 Pakistani military personnel prisoners of war  in East Pakistan. Why did she hand them over to Pakistan under the  Shimla Agreement of 1972, without insisting on a formal recognition in  writing by Pakistan that Jammu and Kashmir is an integral part of India?
Nobody knows the definitive answers to these questions. My assessment  is that she wanted to be generous to Pakistan at the hour of its  greatest humiliation due to the misdeeds of its army and to strengthen  the political leadership of Pakistan and enable it to stand up to the  Army.
If this was her expectation, it was belied. Within five years of the  Shimla Agreement, the Pakistan Army headed by Gen. Muhammad Zia-ul-Haq  overthrew the elected Government of Zulfikar Ali Bhutto and had him  executed after a sham trial. Misplaced generosity should have no place  in our relations with Pakistan.
As the war ended, the R&AW and Kao were the toasts of the  policy-makers. During 1971, Kao emerged as one of the most trusted  advisers of Indira Gandhi. He enjoyed this trust till her assassination  on October 31,1984. During 1971, she did not take any important decision  regarding the crisis in East Pakistan and her conduct of the war  without consulting him.
The Armed Forces had nothing but the highest praise for the  performance of the R&AW in East Pakistan, but its performance on the  Western front, where the Army did not do as well as in the East, came  in for some criticism.
Kao and the officers, who contributed to the success of the R&AW  in 1971, came to be known as the Kaoboys of the R&AW. No one knows  for certain, who coined this title. Some say Indira Gandhi herself…
Despite this, everyone was agreed that 1971 was the R&AW’s finest  hour. There were dozens of officers of different ages and different  ranks, who contributed to its brilliant performance under the leadership  of Kao and K.Sankaran Nair, his No.2.
Kao was 53 years old in 1971 and Nair 50. Nair was an Indian Police  officer from the undivided Madras cadre and succeeded Kao as the head of  the organization in 1977, but quit after a few months due to reported  differences with Morarji Desai, the then Prime Minister. He was  considered one of the outstanding operational officers produced by the  Indian intelligence community since India became independent in 1947. 
He  and Kao became legends in their time in the R&AW.
Kao and the officers, who contributed to the success of the R&AW  in 1971, came to be known as the Kaoboys of the R&AW. No one knows  for certain, who coined this title. Some say Indira Gandhi herself;  others say Appa B.Pant, the former Indian High Commissioner to the UK  and Ambassador to Italy; and some others say T.N.Kaul, former Foreign  Secretary.
Whoever coined it, it fitted those magnificent officers, who  participated in the operations of 1971. George H.W. Bush, the father of  the present US President, held office as the Director of the CIA for a  brief period under President Gerald Ford from November,1975 to  January,1977. He became a close friend of Kao. He had heard from the CIA  station chief in New Delhi about Kao and his officers being fondly  called the Kaoboys of the R&AW by Indira Gandhi and others.
It is said that during a visit paid by Kao to the CIA headquarters in  Washington DC, Bush gifted to him a small bronze statue of a cowboy.  Kao always used to keep it on his table in his office. He had a large  replica of this statue made by Sadiq, a sculptor from Kolkata, and  gifted it to the R&AW. If you happen to visit the headquarters of  the R&AW, you will find this statue of the cowboy in the foyer as  you enter the building. Kao, who was himself a good sculptor, was a  student of Sadiq. Sadiq made the face of the cowboy resemble that of  Kao.
It stands there as Kao’s tribute to the magnificent, but unknown to the nation and unsung Kaoboys of 1971.
