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

891.2546/11–1753: Telegram

The Ambassador in India (Allen) to the Department of State

secret
priority

New Delhi, November 17, 1953—6 p.m.

788. Reference Thorium Nitrate New Delhi Despatch 749, October 27.¹

1. Indians strongly desirous consummate thorium deal with us, but claim their inability supply at less than $3.50 per pound. They, therefore, offer counter-proposal, to supply say 162 to 180 long tons thorium sulphate at $2.50 per pound.

2. Verbatim text their counter-proposal as quoted in agreed minutes.

“It is expected that when the Trombay Plant of the Indian Atomic Energy Commission goes into operation about 180 tons of thorium sulphate will be available per annum as surplus after meeting requirements of thorium nitrate for Gas Mantle Industry. One and two-tenths pounds this thorium sulphate needed to produce one pound thorium nitrate of gas mantle quality of superior grade, viz., 48 percent THO 2 not 46 percent. Listed sales show it would not be possible Government of India sell thorium nitrate this quality at under $3.50 per pound. But, in effort to bridge gap between United States offer of $3.00, and Indian minimum limit, Bhabha and Bhatnagar put up counter-proposal. They suggested it would be possible for Government of India to sell the surplus thorium sulphate at $2.50 per pound, the sulphate being of such quality that 1.2 pounds of it would suffice to produce one pound thorium nitrate 48 percent THO 2 quality. On this basis, total sum involved would amount to approximately $1,008,000. If desired to reduce this sum to approximately $907,000, the Indian Atomic Energy Commission would be prepared reduce amount sulphate sold proportionately and stockpile rest.”

3. Minerals Attaché Corry, has been energetic and effective in these negotiations and resultant counter-proposal is, I believe, fair and reasonable to both sides. I hope it will be accepted, thus immunizing this trouble-breeding Indian resource for a year or more.

Allen

1. Not printed; in this despatch the Embassy in New Delhi transmitted to the Department a copy of the memorandum dated Oct. 14, 1953, which had been prepared by Andrew V. Corry and Dr. S. S. Bhatnagar outlining the terms and conditions which would apply if the U.S. Government agreed to purchase Indian thorium nitrate. (891.2546/10–2753)