891.2546/6–654: Telegram
The Ambassador in India (Allen) to the Department of State
1780. For Gerard Smith. Bhabha stopped over two days in New [Page 1757] Delhi en route from Kashmir (where he has been vacationing) to Bangalore. Mills and Adams met with him June 4 (Deptel 1396, June 3).1 He said he is anxious to finalize thorium nitrate agreement as soon as possible. MEA has had memorandum of agreement under study, and reply to Embassy note (Embdesp 1719, May 7)2 confirming acceptance of agreement will be sent in day or two. This note will propose several minor changes, purpose of which is to clarify meaning. As he outlined them, none seemed to change sense of agreement. However Bhabha said note will also request one modification of some substance. GOI would like to have period ending paragraph 4 changed to comma and following words added: “and except for such additional quantities not exceeding in the aggregate 100 tons which the GOI may sell under arrangements with the governments of the countries referred to in clause 3.” Bhabha stated that GOI wished to be able to make sales, up to 100 tons, on government-to-government basis when purchasing government desired thorium nitrate for experimental as contrasted with commercial purposes.
Mills stated he could not anticipate reaction of US Government to this proposed modification; he did not like to single out particular governments, but we both knew that certain countries did not control reexports as effectively as others. When pressed, Mills said he had in mind certain countries in the east mentioned in paragraph 3. Bhabha replied that the GOI would be glad to eliminate all such countries. Mills then mentioned that there appeared to be some laxity in controls in both Belgium and Switzerland. Bhabha said he was not interested in either. The countries he is interested in, and from some of which inquiries had been received, are UK, France, Norway, Sweden, Denmark and Italy. He said GOI would be glad to list these countries in proposed modification of paragraph 4 instead of using the phrase “governments of the countries referred to in clause 3.”
Bhabha stated he would not insist on this modification but he hoped US Government could accept it. In his opinion if US does not object to the countries in question carrying on experiments, the modification would help achieve the objective of US in concluding the agreement, which, he believed, was to see that all thorium nitrate goes to destinations acceptable to US; he added that he believed US was buying thorium nitrate merely to assure this end.
If US able to accept his proposed amendment, then Bhabha stated the phrase “through no fault of its own” should be eliminated from paragraph 6 since stretch-out in deliveries to US might well be the [Page 1758] result of government-to-government agreements between India and the governments mentioned above.
The note from GOI probably will be received in next few days.