493.919/7–2653: Telegram
The Ambassador in India (Allen) to the Department of State
192. Excon. Embassy officers personally delivered note mentioned Embtel 190 July 251 to Foreign Secretary RK Nehru his home after noon 25th. Nehru acknowledged Deshmukh had talked with him about [Page 1698] this shipment thorium nitrate immediately following Ambassador’s call on Finance Minister. After reading note, Nehru confirmed only Prime Minister could order off-loading thorium nitrate in Colombo, and asserted Prime Minister had not been apprised Battle Act implications in decision permit export. Said he would consult Deshmukh and give Ambassador early reply. Expressed personal opinion off-loading “might make matters worse” as, if publicized, it would reveal destinational discrimination in Indian exports contrary enunicated policy. Also, would reveal existence political strings to US aid.
Nehru admitted that prior to call from Deshmukh he had never read text Battle Act and had not been aware of full implications Section 103 (b). However, he had file at hand and acknowledged that GOI had been fully informed as to text of act, the security lists and fact Communist China an interdicted destination.
Nehru dilated at length of interpretation word “knowingly,” admitting GOI obviously knew of export but did not realize implications this export for aid program. In elaboration this theme he explained: (1) Battle Act an old law which was brought to attention his predecessor but with which he had not familiarized himself; (2) GOI, because it had few if any strategic materials to export, had paid little attention details Battle Act; (3) purpose this export was development commercial markets over 10 year period for products Indian Rare Earths Limited (stated this connection small shipments thorium nitrate had previously been made to Burma and Indonesia); (4) quantity involved present shipment very small and certainly could not be used produce atomic weapons.
Nehru questioned whether phrase “upon recommendation of administrator” at beginning Section 103(b) did not give administrator discretionary authority. In reply he was told this wording simply procedural and that text of Act was mandatory in case of title 1A shipments. Nehru also asked if assurances commodity would not be shipped again would permit presidential action under Section 104. Embassy representative replied that plain reading text seemed indicate no action possible under 104 until aid terminated under 103(b).
Embassy representatives gained impression Nehru an agitated man. While mentioning GOI understanding there were no political strings to US aid, he made no categoric statements such as reported Embtel 4097 May 11, 19532 that India would do without aid if price were a change in Indian foreign policy. He did say India does not agree Communist China under Soviet domination but admitted this a point of disagreement between US and India. He now appears fully understand implications Battle Act. Aside from appropriate rejoinders Nehru’s various comments, Embassy representatives stressed lack US executive [Page 1699] discretion this situation, urged serious consideration possibility offloading shipment Colombo.
- Not printed; the Embassy reported in telegram 190 that the instruction contained in the second paragraph of Department telegram 87 to New Delhi, supra, had been carried out by a) having an informal personal discussion with Deshmukh, and b) by dispatching an official note to the Ministry of External Affairs (493.919/7–2553).↩
- Not printed. (493.919/5–1153)↩