845.24/299: Telegram
The Officer in Charge at New Delhi (Merrell) to the Secretary of State
[Received December 19—1:18 a.m.]
958. Reliably informed Britain has made following demands on India:
- (1)
- India to pay for Burma campaigns, past and future;
- (2)
- India to pay in rupees all expenses of Indian troops in India and abroad. Britain to pay in sterling for that portion of British troops in India which is in excess of normal requirements;
- (3)
- India to pay capital cost of all airdromes built in India with British capital;
- (4)
- India to pay for all munitions factories built in India with British capital;
- (5)
- India to enter into direct lend-lease agreement with United States of America.
Understand first and second proposals unanimously rejected by Viceroy’s Executive Council. Cost of third and fourth being investigated before decision. As regards fifth, refer Mission’s telegram No. 954 dated December 17, 1942.
The over-all effect of these proposals if accepted by India would be to increase this country’s contribution to the war by large sum, and materially to decrease her large sterling credits in London about which Indian Nationalist aides have been seriously concerned for some time.