711.4511/6–1245
Memorandum of Conversation, by the Adviser on Commercial Treaties, Division of Commercial Policy (Wilson)64
| Participants: | Sir Girja Shankar Bajpai, Agent General for India, |
| Mr. Lane, formerly Secretary of Mission at New Delhi, | |
| Mr. Haley, ITP,65 | |
| Mr. Berry, ME,66 | |
| Mr. Ross, CP,67 | |
| Mr. Wilson, CP. |
At the invitation of Mr. Haley, the Agent General for India called to discuss informally the question of reopening negotiations looking to a commercial treaty. Referring to the discontinuance (in 1942) of discussions based upon a draft treaty which the United States presented in 1939, the Agent General (1) inquired what developments there had been since 1942 which would have bearing upon the matter, (2) said that, since India desired to terminate the rights and privileges which British nationals and corporations have in India (on a national treatment basis) under the Government of India Act, 1935 (25 & 26 Geo. 5, ch. 42), it would hardly be feasible at the present time to give Americans most-favored-nation treatment in the matters concerned, and (3) expressed the view that Imperial trade preferences would need to be taken into account but should not preclude the making of a treaty.
Department representatives suggested (1) that American business interests could hardly be expected to participate extensively in trade and industry in India unless there were a treaty to provide a general framework for such participation, (2) that the improvement in the general international situation since 1942 seemed to justify the early resumption of discussions, (3) that while each Government would need to consider its own Constitutional arrangements, it should not be impossible to work out applications of the most-favored-nation principle with exceptions where these were unavoidable and, if necessary, with provision that, as to some subject matters, the United Kingdom would not be considered a most-favored “foreign” nation.
There was brief discussion of the applicability of a treaty which might be concluded between the United States and India to the Indian States as well as to British India.68
Sir Girja said that he would report this conversation to the Government of India. It was understood that study looking to a draft treaty would be continued in the Department,69 and that another conversation concerning the possibility of reopening negotiations would be held as soon as practicable.
- Copy transmitted to the Commissioner in India (Merrell) in instruction 323, June 29, with request that the Mission comment on the prospects for negotiating a treaty of friendship, commerce and navigation with India, “considering the prospective political changes in India. …” (611.4531/6–2945); for documentation regarding the political situation in India at this time, see pp. 249 ff.↩
- Bernard F. Haley, Director of the Office of International Trade Policy.↩
- J. Lampton Berry, Acting Assistant Chief of the Division of Middle Eastern Affairs.↩
- Telegrams 3184, June 15, noon, and 3284, June 22, 1 p.m., from Bern, neither printed.↩
- With regard to the Indian States, see footnote 41, p. 262.↩
- As a result of this continuing study of the treaty question the Office of Near Eastern and African Affairs on September 28, 1945, recommended to the Office of International Trade Policy that no further action be taken at that time toward treaty discussions with India, the Office of International Trade Policy agreeing in a memorandum of April 1, 1946 (711.452/4–146). At the same time the Office of International Trade Policy referred to a memorandum of the India-Burma Committee, “U.S. Benefits and Concessions with reference to [lend-lease and surplus property settlement and other] Negotiations with India”, dated March 13, 1946, in which was stated a general Department opinion that “… the conclusion of a treaty of friendship and commerce with India should be postponed until representative Indian political elements were in control of the external affairs of their country”. (Lot 22, Box 9, Folder “India-Burma Documents 1”)↩