493.918/8–1453
Memorandum by the Under Secretary of State (Smith) to the President
eyes only
I believe this telegram is worth your reading.1 We are working out the immediate problem in connection with the thorium nitrate shipments in accordance with your decision, although the necessary assurances from India have not yet been forthcoming. It is the second part of the message which seems particularly important. Allen is usually an accurate and objective reporter and if he is right in this case, as I am inclined to think he is, it may well be that we have gone past the point of diminishing returns in several areas. I can’t forget that we made all sorts of diplomatic efforts to persuade Burma not to reject our assistance but, having taken that action, she seems to be just as well off and our relations, if anything, are better. Foster has not seen this message but we talked about the general subject of “diminishing returns” before he left, and have started a pretty thorough and careful study of the matter which will be tied in with the final Solarium Plan2 and will be ready for consideration by the Council sometime after you return.