493.919/8–2653: Telegram
The Ambassador in India (Allen) to the Department of State
390. For the Secretary. During conversation with Nehru yesterday I referred to thorium nitrate case, stating that we recognized GOI sovereign [Page 1715] right to trade where it pleased and GOI naturally recognized our right to grant or withhold aid. Nehru nodded his assent.
I then asked whether he would be willing, in interest of committee and friendly relations, to let us know in advance if at anytime India decided to exercise its sovereign right to trade with Communist countries in commodities barred by Battle Act. Nehru said with reference to past thorium shipment, that when he approved export license, it was merely one of dozens of matters he had had to handle in course of one day, that he had attached no particular significance to it and was greatly surprised at terrific consequences which had resulted. As regards future, he said GOI did not operate secretly or in vacuum and was always glad to consult with other powers on matters of mutual concern. He could not say that India could undertake to consult with us re every export application among hundreds which might bear in some way on items named in embracive provisions of Battle Act.
I said what I would like to be able to report to Washington was his assurance that any deliberate decision by GOI to exercise its sovereign right to ship strategic commodities to barred areas would be made known to us in advance, in all frankness and friendliness, for the sake of comity and maintenance of good relations.
Nehru stared at ceiling for full minute, smiled, turned to Ambassador Donovan, who was present, and asked if he had ever been to Thailand before.
Pillai has asked me to come to see him this afternoon on this case.