845.24/290: Telegram

The Officer in Charge at New Delhi (Merrell) to the Secretary of State

882. In a formal reply to this office’s note conveying the substance of Department’s 627, October 29, 2 p.m., the Government of India strongly emphasizes its hope that there will be no change in Department’s policy as regards (1) loan of “experts and advisers” recommended by Grady Mission; and (2) delivery of materials and machinery now under negotiation or already ordered. Government particularly stresses its hope that “very high priority” will be given to raw and finished materials for all forms of transportation—ports, inland waterways, railways and motor vehicles—urgently needed for expansion of India’s war effort.

Government of India has nearly completed detailed examination of final Grady report and will soon state which of the projects it desires to adopt. Its recommendations on individual projects considered essential to war effort will be made in the light of Department’s policy as outlined in cable cited above.

Merrell