891.2546/4–451
The Assistant Secretary of State for Congressional Relations ( McFall )to Representative Jacob K. Javits 1
My Dear Mr. Javits: I welcome the opportunity afforded by your recent oral inquiry to make available information concerning materials found in India which are of value to the atomic energy program of the United States. You will understand that for security reasons it is not possible for the Department to provide detailed information on certain aspects of this matter.
The Indian Atomic Energy Act of 1948 is the basis for embargoing the export from India of all materials of importance to the development of atomic energy. The basic long range purpose of this Act is to develop atomic energy plants in India as a source of power for the benefit of the Indian people. The Indian Government felt it necessary to conserve its natural resources for future utilization in its own atomic energy program. This was the more true as there was and is a great deal of uncertainty as to the extent of India’s resources in this field. Moreover, the Indian Government desired to begin the refining and processing of atomic energy materials in India at the earliest possible date, as an essential first step in the development of its long range program.
Raw materials of importance in the development of atomic energy which are known to exist in India are monazite sands and beryl. The existence of uranium ore deposits has been reported, but not confirmed.
Monazite sands are the principal natural source of thorium, a potential source of fissionable material. Thorium’s utility in our atomic energy program is still potential as indicated by the following extract from a letter addressed to the Honorable Charles J. K. Kersten by the Chairman of the United States Atomic Energy Commission on March 5, 1951:2
“Our present requirement for thorium is confined to the small quantity necessary for our research program on this material. Thorium, however, may in the long run be an important material for the Commission’s program. Therefore, we have both an immediate and an important long-range concern in thorium and, consequently, a continuing interest in assuring that thorium or monazite containing thorium, is available to the Commission.”
The Commission has no purchase program for monazite sands. Moreover, one private processor of monazite sands in this country has on hand partially processed sands containing several hundred tons of [Page 711] thorium which have not been extracted because no profitable market exists in the United States at the present time.
The United States Atomic Energy Commission stated in a press release issued October 14, 1948:
“Current demand for monazite ore arises principally from its established uses outside of atomic energy since it is the only commercial source of the element cerium and other rare earth materials which are essential to many industries.”
This is still true. The rare earths contained in monazite sands are required for varied industrial and scientific uses, many of these being of direct and immediate importance to the defense effort.
India is the principal world source of high quality monazite sands, with Brazil a close second. Other sources are of minor importance. Considerable interest has recently been shown in certain United States deposits where the monazite, although low in thorium content and somewhat difficult to mine, is rich in rare earths. India’s reserves have been estimated at between one and two million tons, enough to meet foreseeable world requirements for at least a century.
In pursuance of its desire to process its own raw materials of atomic energy importance, the Indian Government has contracted with French interests for the construction of a plant to process monazite sands in India. It is worthy of mention that before entering upon this agreement, the Indian Government had sought without success to interest American and British industrialists. The thorium produced by this plant would presumably be embargoed for export under the provisions of the Indian Atomic Energy Act, but the rare earths would not. The United States would, therefore, expect to have the opportunity of buying these materials in the normal course of international commerce.
In the meantime and in view of India’s large reserves and our urgent need, the Department, in consultation with other interested agencies of this Government, has been endeavoring to persuade the Indian Government to permit the export of monazite sands to this country. As I informed the Honorable Charles J. Kersten in a letter dated March 8, 1951,3
“The Department and the Embassy (in New Delhi) have, on numerous occasions, assisted representatives of various American companies in their approaches to Government of India officials. The Department and the Embassy worked closely with and assisted representatives of the Atomic Energy Commission who have taken up the problem in India.
[Page 712]“Frequent and continuing approaches at all levels of the Indian Government have been made by the Embassy in New Delhi. Ambassador Henderson4 has personally discussed the problem with the highest officials of the Indian Government. Other officers of the Embassy are in frequent negotiation with appropriate Indian officials. In December 1950, Ambassador Henderson wrote an informal note on the matter to the Secretary General, Ministry of External Affairs of the Government of India. The reply pointed out that India’s domestic requirements for monazite precluded the possibility of exports and referred to the expectation that a plant for processing monazite would soon be operating in India.5 The Embassy will continue its negotiations on this problem; the matter is not considered closed.”
To turn to beryl, the principal source of beryllium, it should be noted that this element is not fissionable nor is it a potential source of fissionable material. It is, however, used as a neutron moderator in nuclear reactors. It also has important industrial uses, mainly in alloy with other metals.
India is a producer and was formerly an exporter of beryl. The extent of its reserves is not known, and the existing beryl mining industry is small and lacks modern equipment. A large increase in beryl production is, therefore, unlikely in the near future. The Department has discussed United States needs for beryl with the Government of India and is not without hope that some exports may be arranged.
As regards uranium ore deposits in India, it must be pointed out that reports thus far received are unconfirmed. If uranium ores do exist in India, their extent and quality have yet to be determined. This Government will, of course, closely follow further developments in this connection.
I am sure that you will agree with me that the foregoing information is relevant to United States assistance to India in its present food crisis only to the extent that the embargo on the export of these atomic energy materials reduces India’s ability to pay for food grain imports. In that connection, you will be interested to know that if we received as much monazite sands and beryl as we desired from India, the dollar exchange earned annually by India would not exceed two million dollars. This is hardly a significant figure when weighed against the cost of two million tons of grain.
We should not, then, link our need for these strategic raw materials with India’s need for food to save the lives of its people. Our proper course is to continue our discussions with the Government of India looking toward a relaxation of its embargo wholly independently of our action with respect to food grains.
Sincerely yours,
- Assistant Secretary McFall addressed identical letters to Representatives Javits of New York and Thomas P. Morgan of Pennsylvania on April 4; to Representative Franklin D. Roosevelt, Jr., of New York on April 9; and to Representative Hugh B. Mitchell of Washington on April 16.↩
- Not printed.↩
- Not printed.↩
- Loy W. Henderson, United States Ambassador in India since 1948.↩
- The correspondence under reference is not printed.↩