Foreign Relations of the United States, 1952–1954, Africa and South Asia, Volume XI, Part 2

411.919/10–1453: Telegram

The Chargé in India (Mills) to the Department of State

secret

New Delhi, October 14, 1953—7 p.m.

633. No distribution.

1. Conformable Deptel 388, October 8.¹ I informed Pillai October 13 Embassy authorized resume negotiations for thorium nitrate purchase arrangement immediately. He named Bhatnagar Indian negotiator and I named Corry.

2. Same afternoon Corry began talks with Bhatnagar pursuant line Department telegram 287, September 15. Bhatnagar’s response cordial but indicated he could not persuade Indian Rare Earths Limited accept less than $3 per pound (see sentence 4 paragraph 7 Embtel 263, August 6).² He said $3.25 represents Bha Bha’s³ rock-bottom price but Bhatnagar hopes induce Bha Bha and Board of India Rare Earths accept $3 if US offers. Corry exhibited great reluctance go so high (but would accept it, if found necessary, as permitted by instruction in penultimate paragraph Deptel 287). Bhatnagar seemed receptive to method of payment sketched in 5b in reference telegram. Asked for several days to think through and suggested Corry and he prepare memorandum for him to present next week to Indian Rare Earths Limited. Corry agreed this procedure.⁴

Mills

1. Not printed; see footnote 2, supra.
2. Not printed; sentence 4 of paragraph 7 read as follows: “[Bhatnagar] Mentioned $3 per pound as his price.” (493.919/8–653)
3. The reference is to Dr. H. J. Bhabha, Chairman of the Indian Atomic Energy Commission.
4. Despatch 686 from New Delhi, Oct. 15, 1953, not printed, contained memoranda of Mills’ conversation with Pillai and Corry’s conversation with Bhatnagar (891.2546/10–1553).