711.452/44
The Assistant Secretary of State ( Acheson ) to the British Chargé ( Campbell )
My Dear Mr. Chargé d’Affaires: I enclose a copy of a letter dated July 1, 194144 from Sir Firoz Khan Noon, K. C. S. I., relating to certain matters under consideration in connection with the proposed treaty between the United States and India. In view of the recent appointment of Sir Firoz to a post in India, it is not known whether Sir Firoz is still engaged in the consideration of questions relating to the proposed treaty. For this reason it is considered appropriate to communicate to you the attitude of the Department concerning the following matters referred to by Sir Firoz in his letter.
It is noted that it is the desire of the Government of India that the terms of the proposed treaty provide for special treatment to be accorded to the limitrophe countries of Nepal, Afghanistan and Iran. In view of the special factors affecting the trade between India, on the one hand, and Nepal and Afghanistan, on the other, the Department perceives no objection to the incorporation within the treaty of a provision recognizing the special position of these two limitrophe [Page 201] countries and placing them outside the purview of the treaty. It is the opinion of the Department, however, that India’s trade relations with Iran, and Iran’s trade relations with other countries, are not such as to warrant the inclusion within the treaty of such a provision with respect to Iran. In this connection it may be mentioned, furthermore, that, whereas Nepal and Afghanistan are land-locked countries with extensive frontiers over which pass their principal arteries of trade, Iran is a maritime nation engaged in direct sea-borne trade with various countries, including the United States.
It is noted also that Sir Firoz has stated that he is informing his Government of the Department’s desire that there be incorporated in the treaty provisions according to American nationals and corporations the same rights and privileges in the exploration and development of mineral resources as accorded to those of other countries, including the United Kingdom.
It would be greatly appreciated if you would kindly make known the foregoing views of the Department either to Sir Firoz Khan Noon or to the appropriate authorities of the Government of India.
I am [etc.]
[In a letter from the Indian Agency General, December 15, 1942, it was stated that the Government of India, after most carefully considering the matter, “are disposed to feel it wiser, in view of the changed situation in India, to defer the conclusion of the negotiations until conditions are more settled”. (711.452/49)]
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