891.03/4–2251: Telegram

The Ambassador in India (Henderson) to the Secretary of State

secret

2928. 1. Saw Bajpai this morning his request. He outlined substance telegram from Pandit describing last conversation with McGhee re food grain bill and draft agreement. Pandit’s account in general similar that in Deptel 1717, Apr 20.1

2. Bajpai said conversation had indicated it would be difficult Dept make any radical change in conditions of aid. It would seem, for instance that observers may find it necessary observe all distribution since US grain intermingled. I replied this matter did not seem to me so important. Our observers would be men of common sense who wld not try throw weight about. Bajpai said it looked like special mission necessary although it wld be attached to Emb and under direction of Amb. He hoped too much emphasis wld not be placed on special status of mission. I said I was sure US Govt wld select experienced tactful men for this work.

3. Bajpai added it seemed best not pursue matter further for present particularly since status food grain bills seemed fluid. Both Houses Congress appeared more interested in loan than grant. He assumed Congress wld not insist on same degree observation and control over grain obtained by loan as that by grant. GOI was somewhat concerned at tendency members Congress introduce factor strategic minerals. GOI had been making special effort during last two years increase export manganese and was exporting beryl only to US. GOI leaders however likely to balk if they shld obtain impression US Congress was taking advantage India’s desperate need grain to exert pressure for more strategic materials. I said our need for strategic materials also very great for purpose not only our defense but that whole free world.

It was not surprising therefore that certain members shld believe that if US shld aid India in its food crisis India shld be willing help US in its strategic materials crisis. State Dept had, however, been [Page 2151] opposing mention of strategic materials in food grain legislation. It was hopeful that eventually we cld work out arrangements with India for obtaining certain urgently needed strategic materials in friendly spirit mutual helpfulness.

Henderson
  1. Not printed, but see footnote 1, supra.