845.515/3–1045

The Secretary in Charge at New Delhi (Merrell) to the Secretary of State

No. 1044

Sir: I have the honor to report that, after considerable reflection and in view of growing agitation in the economic press of India for the negotiation of a dollar loan for which some of India’s sterling assets would be offered as security, it was decided to bring to the attention of Sir Ardeshir Dalai, Planning and Development Member of the Government of India, in an informal and personal but written form, part of the contents of the Department’s confidential Airgram A–313 of December 19, 1944, 2:15 p.m., and a letter was sent to him on March 2, 1945, a copy of which is enclosed.59

There is also enclosed a copy of Sir Ardeshir’s acknowledgment, dated March 8, 1945,60 in which he states that it is possible, but by no means certain, that he may visit the United States on the conclusion of his visit to the United Kingdom. The latter visit will be in company with a group of Indian industrialists who plan to leave India about April 1st and who are scheduled to go to the United States after visiting the United Kingdom. Sir Ardeshir indicates that if he goes to the United States he will have an opportunity to discuss at first hand with officials of the Government of the United States such questions as foreign capital participation, management, and control in such ventures as an electrical machinery industry for India.

It will be noted that Sir Ardeshir, in the final paragraph of his letter, states that he has brought to the attention of the Government of India the interest of the United States in reopening negotiations of a commercial treaty between India and the United States. I mentioned this interest orally to Sir Olaf Caroe, Secretary to the Government of India in the External Affairs Department, shortly after my return to India in January 1945.

Respectfully yours,

George R. Merrell
  1. Neither printed. Regarding airgram A–313, December 19, 1944, see despatch 1029, February 27, from New Delhi, supra. In his letter to Sir Ardeshir the Secretary in Charge said in part: “… it might be observed that technical and financial aid for … India would gain encouragement through the conclusion of a treaty of commerce and navigation between India and the United States. The Department of State would be prepared to resume discussions of such a treaty at any propitious time. As you probably are aware, in 1938 the two Governments agreed that such a treaty should be concluded, but negotiations were interrupted on December 30, 1942, at the request of the representatives of the Government of India who, however, stated that the Government of India had in no way lost its interest in such a treaty.” (845.515/3–1045)
  2. Not printed.