845.24/298: Telegram
The Officer in Charge at New Delhi (Merrell) to the Secretary of State
[Received December 17—10:19 a.m.]
954. It was learned informally and off the record today from a member of Viceroy’s Executive Council that India telegraphed London about a week ago suggesting Halifax leave [have] exploratory informal conversations in Washington with view to ascertaining attitude of United States Government toward direct Lend-Lease agreement [Page 749] with India. So far as India is concerned possibility of such agreement appears to hinge fundamentally on extent to which United States might be willing to modify for India post-war tariff reduction provisions of article 7 British master agreement.64 It is thought certain Indian business community will bring strong pressure on Government to protect infant industries after war. Government has already guaranteed protection in certain instances. Apparently no change in present reciprocal Lend-Lease policy, now limited to services and supplies for American troops in India, is contemplated.
Understand British Government favors direct agreement.
- Preliminary agreement between the United States and the United Kingdom regarding principles applying to mutual aid in the prosecution of the war against aggression, signed at Washington February 23, 1942; for text, see Department of State Executive Agreement Series No. 241, or 56 Stat. (pt. 2) 1433.↩