493.919/9–953: Telegram
The Ambassador in India (Allen) to the Department of State
462. Urtel 253, September 3. I have just had very satisfactory talk with Pillai re thorium nitrate. He said he had discussed with Prime Minister Nehru my suggestion that GOI agree to give us advance notification of any future decision to ship barred commodities, and that Nehru had asked him to let me know that while GOI had no desire to carry on trade behind our backs or in furtive manner, he was concerned over length of items which might be listed under category 1–B. He did not think it feasible to undertake assurances covering perhaps scores of items, some of which Indian authorities might not know were included. Nehru said he could assure US that no “marked change” would be made in India’s trade policy without advance notification to US.
Referring to his (Pillai’s) impression (Embtel 402, August 27) that India was being treated more severely than other countries, I said this thorium nitrate shipment was only case involving category A items which had ever arisen. Pillai said he had not been aware of this fact and could understand difficulty created, in view of mandatory nature of Battle Act. He then volunteered to ask Prime Minister to agree to [Page 1720] give US firm assurances that not one ounce of any category A item would be shipped without advance notification to US and that we would also be notified in advance if any “marked change” was decided upon in India’s general trade policy.
I pointed out, with reference to category B items, that we knew that India had shipped certain amounts of mica to Communist areas during past year, that world-wide bids had recently been invited for 27,000 tons of steel scrap, and that a few tires were being smuggled into Tibet through Sikhim. Of these items, I said we felt mica to be the most serious.
Pillai said he would look into these items and would talk with Prime Minister again re assurances.
Comment: I gained impression that Nehru now desires to meet our wishes in this matter and hopes satisfactory formula can be reached.