175

CABLEGRAM FROM HIGH COMMISSION IN NEW DELHI TO DEPARTMENT OF EXTERNAL AFFAIRS

New Delhi, 8 June 1951

  1. SECRET

Reference your telegram 131.1 Indian authorities today replied to your telegram under reference in the following sense.

  1. They gratefully accept offer of the Australian Government to supply under the Colombo Plan commodities and materials up to total of £4,200,000 over period July 1951 — June 1952. They have no objection to allocation of £3,700,000 if this sum for expenditure on food grain and the balance on other supplies to be determined, and agree to exchange of notes as proposed.

  2. They will be glad to obtain from the next Australian harvest wheat to the total value of £3,/00,000 less cost of any wheat supplied by the present harvest. They assume that supplies offered would be additional to the 300,000 tons asked for by India for sale by Australia during the third International Wheat agreement year July 1951 — June 1952.

  3. Indian authorities suggest that discussions be held in India to determine other supplies for developmental purposes for which allocation of £500,000 is proposed.

  4. As already advised in my telegram 170,2 Indians while welcoming any wheat which may become available, do not require coarse grain offered.

  5. Text of reply will be included in next air bag and I should be grateful of advice on proposed public announcement.

[NAA: A9879, 2202/E1 part 4]

  1. 20 May. It communicated a message from Spender to Nehru outlining the scope of the proposed Australian contribution to the Colombo Plan and suggesting that the grant to India be expended on (a) grains such as barley, maize and sorghum; (b) wheat that might become available from the Australian Wheat Board before the next Australian harvest; (c) wheat from the next Australian harvest to be ordered from the Australian Wheat Board to the value of £A3.7 million c. and f. less the value of grains which it may have been practicable to supply under (a) and (b); and other commodities and supplies up to an amount of £A500,000 for India’s developmental projects. The message further requested an exchange of letters to confirm arrangements and to outline how the proceeds of sales of Australian supplies in India would be utilised for the purposes of the Plan. ↩

  2. Not published. ↩

Date

8 June 1951

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