Foreign Relations of the United States, 1947, The Far East: China, Volume VII

693.0031 Tibet/12–3047

The Chargé in India (Donovan) to the Secretary of State

No. 459

New Delhi, December 30, 1947.
[Received January 14, 1948.]

Sir: With reference to the Department’s telegram to the Embassy No. 812, December 26, and to the Embassy’s recent despatches on the subject of the Tibetan Trade Mission,^* I have the honor to transmit for the information of the Department a memorandum of a conversation between officers of the Embassy and members of the Tibetan Trade Mission which called at the Embassy today.

As the Embassy has indicated in earlier reports, the Tibetan Trade Mission has no very definite plans for increasing trade between Tibet and the United States, but is clearly interested in purchasing gold and silver. In the course of the conversation under reference Tsepon Shakabpa, leader of the delegation, stated that they wished to buy gold and silver for the Tibetan Government, and when asked whether this was to be used as backing for their currency, replied in the affirmative. As the Department is aware, two questions arise in connection with the Mission’s desire to purchase gold and silver: (a) Will they be able to obtain the necessary dollars from the Government of India? and (b) Will their intended purchases, in view of the provisions of the Gold Reserve Act of 1934, be regarded by our Government as purchases on a foreign government account? If the Mission obtains enough dollars from the Government of India to purchase gold and silver in the United States, our Government will presumably be faced with the problem of deciding to what extent the Tibetan Government may be regarded as autonomous.

As is indicated in the enclosed memorandum, there is reason to doubt that the Government of India will grant any substantial amount of dollars to the Mission. This has been insinuated in remarks made to an officer of the Embassy both by an official of the Ministry of External Affairs and by the Government of India representative in Gangtok.

Another point which the Embassy wishes to call to the attention of the Department, and of the Embassy at Nanking and the Consulate General in Shanghai, is the fact that Tsepon Shakabpa stated that since in the past a certain amount of trade had been carried on between Japan and Tibet, the members of the Mission hoped to visit Japan en route to the United States. They were told that since they planned to visit China en route to the United States it would be advisable to inquire at the Consulate General in Shanghai or the Embassy in Nanking regarding formalities connected with visits to Japan.

The Chinese Embassy has not raised the question of visas for the Tibetans with this Embassy since the occasion of the Counselor’s call reported in the Embassy’s telegram to the Department No. 1146 dated December 22. That the Government of India does not look with favor on the possibility of Chinese interference with the proposed trip of the Mission was indicated by the fact that an official of the Ministry of External Affairs remarked to an officer of the Embassy on December 28 that members of the Mission were anxious to call on various foreign missions in Delhi; that he hoped this Embassy would be able to receive them soon; and—smilingly—that it was quite unnecessary for the Ministry of External Affairs to encourage the Chinese Embassy to get in touch with the Tibetan Mission.

As has been indicated in earlier communications, the importance of the Tibetan Trade Mission’s visit from a purely commercial point of view will be small, but a friendly reception in the United States may go a long way toward strengthening relations with a government which controls a large and strategic area bordering on territory where Soviet influence is widespread.^†

Respectfully yours,

Howard Donovan

[Enclosure]

Memorandum by the Second Secretary of Embassy in India (Weil)

New Delhi, December 30, 1947.

Having written the Ambassador requesting an interview, the Tibetan Trade Mission called at the Embassy this morning and was received by the Chargé d’Affaires, Mr. Day, and Mr. Weil. The members of the Mission present were Tsepon Shakabpa, leader; Rimshi Pangda Tsang; Khenchung Changkhyimpa; and Depon Surkhang. They were accompanied by an interpreter named Ratna who, according to Dayal of External Affairs and Depon Surkhang, is a Nepalese by birth. Depon Surkhang told me this morning that Ratna had Tibetan citizenship and carried Tibetan travel documents. While Depon Surkhang speaks English with some degree of proficiency and seems to have been originally designated as interpreter for the Mission, Ratna acted as interpreter throughout the conversation this morning.

After Tsepon Shakabpa had presented Mr. Donovan with a photograph of the Regent and letters from the Regent and the Kashag (Cabinet), discussion centered on the subject of trade between the United States and Tibet, and the specific objectives of the Mission’s intended trip to the United States.

Shakabpa referred to the fact that the Mission was holding talks with External Affairs with a view to obtaining dollars from the Government of India. He said that while they hoped to proceed to Calcutta around January 2, it was possible that the talks might last until a later date. This ties in with remarks made to me by Dayal of External Affairs and A. J. Hopkinson, Government of India representative in Sikkim, to the effect that the Government of India might not readily grant the Tibetan Trade Mission any substantial quantity of dollars.

In the course of the conversation Shakabpa referred to the fact that all dollars received for exports of Tibetan products to the United States—particularly wool, yak tails, and musk—were held by the Government of India, which in turn paid the Tibetans the equivalent in rupees. In this connection Depon Surkhang told me that along with the dollar question, the Mission was taking up the matter of customs duty collected by the Government of India on imports into Tibet passing through India. I believe it is very doubtful that the Tibetans will get very far in their efforts to have these customs duties waived.

When Shakabpa was asked just what American products they were particularly interested in buying, he was rather vague and said the present trip was in the nature of a survey to find out what products they might really be interested in. He did say, however, that they were definitely interested in buying gold and silver for the Tibetan Government. When asked whether this was to be used for backing of their currency, he replied in the affirmative; and when asked whether any of the metal would be used for coinage, he indicated that very little, if any, would be utilized for this purpose. In this connection the question arises whether our Government would consider an order from the Lhasa Government as falling under the general prohibition in the Gold Reserve Act of 1934 of purchases of gold in the United States except on foreign government accounts.

Shakabpa asked for some sort of introductions to use in the United States. Mr. Donovan told him as soon as they knew approximately when they would arrive in the United States, the Department of State would be informed; and that since they planned to visit China en route to the United States it would be possible for the Consulate General in Shanghai or the Embassy in Nanking to notify the Department. This seemed to satisfy the members of the Mission.

Shakabpa said that since in past years there has been a certain amount of trade between Japan and Tibet, they were interested in visiting Japan, and he inquired whether there would be any difficulty in this connection. Mr. Donovan said he felt it would be advisable for the members of the Mission to make inquiries on this subject in Shanghai or Nanking where the Consulate General or the Embassy would be able to give them full particulars.

At Mr. Donovan’s suggestion the members of the Mission said they would be glad to get in touch with the Embassy following the conclusion of their talks with the Government of India.

In view of the fact that members of the Mission were advised to apply for visas from the United States in Nanking or Shanghai, no direct reference was made to the exact nature of their travel documents or to the question of Chinese claims of sovereignty over Tibet.

T. Eliot Weil

1. No. 100, August 1, 1947, “Tibetan Trade Mission: Plans for Washington Visit; Political Background”. No. 142, August 21, 1947, “Additional Background on Tibetan Trade Mission; Questions Regarding Policy Toward Tibet”. No. 353, November 21, 1947, “Particulars Regarding Members of Tibetan Trade Mission”. [Footnote in the original.]
2. Despatch No. 869, December 3, 1946, “Policy on Status of Tibet: Desirability of Continuing Noncommittal Attitude”. Despatch No. 913, January 13, 1947, “Letters to the President from the Dalai Lama, the Regent, and the Kashag of Tibet; Political and Strategic Considerations Pointing to Desirability of Returning Courtesy Visit to Tibetan Goodwill Mission”. [Footnote in the original; despatch No. 869 not printed.]