411.919/9–853: Telegram
The Ambassador in India (Allen) to the Department of State
453. Reference Deptel 253, September 3. Bhatnagar called on TCA Director Willson today to say he was anxious to reopen negotiations for sale of entire thorium nitrate output to United States. He said he had recently received inquiries from USSR and China and is anxious to be in position to reply to all such inquiries that all production has been sold. He said he could sell small amounts to Britain, Russia, China [Page 1719] and elsewhere at $4 to $5 per ton but he much preferred to sell it all to United States. He stressed his pro-American attitude and declared he remained so 100 percent.
Willson said he would report this conversation to me. He added that he understood I was in conversation with Pillai on general question thorium shipments. Bhatnagar said he understood general problem had been cleared up. Willson said he was not informed if this were true.
Comment: We have avoided raising question of thorium purchases with Bhatnagar pending solution of general problem but are pleased he has taken initiative. Both Willson and Corry are confident Bhatnagar is playing square with us and believe his vagaries in past have resulted from effort to obtain good price. Bhatnagar mentioned to Willson today that Indians had paid $3.05 for United States’ thorium nitrate. His implication was he considered this would be fair price for us to pay.
Corry thinks we should be prepared to go as high as $3 if necessary but make initial offer of $2.75.
I hope we can act promptly on Bhatnagar request. This would assist in negotiations on larger question. I have asked to see Pillai tomorrow on general question. Your telegram under reference is most helpful.