Office of the Historian

891.2546/6–754: Telegram

The Secretary of State to the Embassy in India1

secret
Washington, July 8, 1954—5:51 p.m.

24. Re Embtel 1784, June 7, 1954.

1.
Phrase “at dock New York” should read “ex dock New York”. Department’s A-401, April 27, 1954, gives detailed definition.2
2.
Agree replace words “Atomic Energy Commission” with words “the Government of India” in clauses 2 to 6 of the memorandum.
3.
Agree to inclusion of force majeure clause, details to be worked out in procurement contract.
4.
Accept minor changes proposed reftel paragraph 4, a through d.
5.

Can not accept GOI suggested additional clause at end of paragraph 4. This provision could reduce US receipts thorium nitrate to insignificant quantities extending over indeterminate number of years. Would also present most difficult budgetary problem through necessity keeping funds available over long, indefinite period.

Reject proposed deletion from memorandum paragraph 6 of phrase “through no fault of its own.”

6.
On assumption GOI will accept above modifications, Embassy may indicate them as mutually agreed amendments to Memorandum of Commitment of April 10, 1954, as earlier modified by Deptels 1230, April 22 and 1259, April 30.3
Dulles
  1. This telegram was drafted by Hamilton of S/AE and was signed by Smith of S/AE.↩
  2. Not printed; see footnote 3, p. 1756.↩
  3. Not printed; see footnote 1, p. 1756.↩