845.24/99: Telegram
The Consul at Bombay (Donovan) to the Secretary of State
[Received May 21—2 p.m.]
387. Grady’s 35. “Mission is flying to Karachi today and will leave there for Cairo May 22. Expect to arrive Washington about June 1st and to have available shortly thereafter preliminary report covering points raised by Economic Warfare as basis for early conference. Complete detailed report will become available after Mission’s return. Mission greatly appreciates McCabe’s70 prompt action on recommendation covering ferro molybdenum. His cable71 was most helpful here as evidence of governmental support.
During Mission’s stay in India it conferred with interested Government departments including Supply, Commerce, Communications and Defense in Delhi, Calcutta and Bombay. It met with country’s leading businessmen especially those engaged in production and transportation and visited representative plants of concerns working on war orders. Cabled recommendations deal chiefly with materials and personnel [Page 657] immediately and urgently required to assist in Indian war effort. Some orders for materials supported by Mission were made prior to its arrival but were reendorsed after careful investigation because of special importance to essential production. Other orders originated in my Mission conference with Government officials and business leaders. When satisfied that materials would substantially assist war effort Mission support was given to orders placed by Supply Department. In many instances investigation included special visit to plants where materials were to be used.
Mission’s recommendations are divided into two general categories: Those designed immediately to assist the war effort and those requiring a longer time to become effective. Cabled recommendations covering materials and personnel are of first type and have been specific. Long term recommendations have necessarily been more general in as much future requirements of army, navy and air force are not available. Marked expansion in production of munitions and other war materials can be accomplished only by detailed planning because of close inter-relationship between such production and steel, railway power and port capacities now fully employed and availability of essential raw materials. Shipping and the utilization of productive capacities in the United States and the United Kingdom are also factors. The Mission has recommended to Indian Government that detailed plans be made as soon as possible providing for coordinated expansion of productive facilities. Such plans can best be studied and approved in Washington or London as a part of broader problem of Allied strategy.
Cabling en clair Mission’s press release72 issued today giving summary of recommendations contained in preliminary report to Indian Government.
Should Department wish to send cables in reply to those sent by Mission, please address Merrell, New Delhi.”