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The original documents are located in Box K20, folder "Kaul, T.N." of the Arthur
Burns Papers at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
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copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box K20 of the Arthur Burns Papers at the Gerald R. Ford Presidential Library
September 4, 1974
R.
GERALD
Dear Ambassador Kaul:
FORD Treaty
Chairman Burns has asked me to thank
you for sending him a copy of the booklet, "India's
War On Want." # He greatly appreciates your
courtesy.
Very truly yours,
Normand Bernard
Assistant Secretary of the Board
The Honorable T. N. Kaul
Ambassador of India
2700 Macomb Street, N.W.
Washington, D. C. 20008
NB:slc
BOARD OF COVERNORS
FEDERAL
AMBASSADOR OF INDIA
DU 2:05
$441 THE
2700 macomb Street. 20008 N.W.
28th August 1974
Dear Dr Burn
In view of the interest evinced in
India's recent peaceful nuclear experiment, I
am enclosing a booklet entitled "India's War
On Want", which deals with India's plans for
the peaceful, progressive, uses of atomic
energy.
I hope you will find it of interest.
Sincerely,
Tukaul
(T.N.Kaul)
Triloki nath Kaul
Hon'ble Dr. Arthur Burns,
Chairman,
Federal Reserves,
WASHINGTON D.C.
FORD R. GERALD
LIBRARY
January 5, 1976
Dear Mr. Ambansador:
Thank you for sending me a copy of your
records
Embassy's pamphlet on recent developments in India.
I appreciate your consideration in bringing your
Government's views to my attention.
With kindest personal regards.
Sincerely yours,
Arthur F. Burne
His Excellency T. N. Kaul
Ambassador of India
Washington, D.C. 20008
NB:pg
#2094
January 5, 1976
His Excellency
T.N.Kaul
The Ambassador of India
Embassy of India
2107 Massachusetts Avenue
Washington, D. c.
Dear Mr. Ambassador:
Mrs. Burns and I want to thank you for
the wonderful Indian tea and to tell you how much
we appreciate your thoughtfulness.
With every good wish for the New Year,
Sincerely yours,
Arthur F. Burns
CCM
October 31, 1975
Dear Mr. Ambassador:
I read with interest the pamphlet on India that
you recently sent me. My congratulations to your
Economic Wing on a very effective presentation of
salient information relating to your nation's economic
development.
Sincerely yours,
Arthur F. Burne
His Excellency T. N. Kaul
Ambassador of India
2700 Macomb Street, N.W.
Washington, D. C. 20008
NB:ja
#1852
none
BOARD OF GOVERNORS
OF THE
AMBASSADOR OF INDIA
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
1975OCT 29 PM 1: 37
- THE
RECEIVED
OFFICE OF THE CHAIRMAN
# 1852
GERALD R.FORD R. FORD
LIBRARY
Dear Dr. Burns:
October, 1975
I enclose a copy of a booklet that our Economic Wing has
had published on India's economic progress. I hope that you will
find it interesting.
Yours sincerely,
Wharl
T.N. Kaul
Dr. Arthur Burns
Chairman
Federal Reserve Board
Constitution Ave, N.W.
Washington, D.C.
INDIA'S WAR ON WANT
PEACEFUL NUCLEAR EXPERIMENT
INDIA'S underground nuclear detonation in May was truly a "shot heard
'round the world," although unlike the American Revolution's original "shot",
the reaction was somewhat mixed.
"No nation could long
There was welcome, consternation, forecasts of Armageddon, and
maintain or morally defend a
disappointment. Surprise was registered by some countries, as well as
monopoly of the peaceful
indignation; others welcomed India's declaration that she would use nuclear
benefits of atomic energy."
technology for peaceful purposes.
Underlying the adverse reaction was the question: "How could India,
PRESIDENT HARRY S TRUMAN
land of non-violence and Gandhi, a nation beset by immense economic and
Navy Day Address, 1945
social problems, engage in a chauvinistic nuclear pyrotechnic display?"
The specter of nuclear proliferation was raised, accusations of betrayal
were made. Just what was going on?
In truth, this ancient and fabled land of India has always been something
of a mystery to the West, full of confusing contrasts of the material and the
spiritual, new and old, wealth and poverty. There is the paradox of a nation,
considered technologically underdeveloped, producing Nobel Prize-winning
scientists and physicists; sophisticated minds with the knowledge to harness
the atom.
Why, then, should the underground nuclear explosion have been such a
shock and a surprise? After all, hadn't India actually embarked on its atomic
research program upon independence, a quarter of a century ago? Doesn't
India have the same-and probably more intense-needs for all the
promises of nuclear discoveries, including its use to help develop resources
such as natural gas, coal, minerals, etc.?
MOO
FAIR QUESTION
India's leaders, from the beginning, have pledged that her atomic and
nuclear research was dedicated to peaceful uses. Why should an
underground explosion, without fallout, fully complying with the Partial
¥0
Test-Ban Treaty of 1963, and using India's own technology, be viewed with
alarm?
It would seem fair to ask, "What's all the excitement about?" as Prime
Minister Indira Gandhi indeed remarked. Let's look at the background, let's
see what the explosion may mean to India and her neighbors, what is the
possible economic impact, and what effect is this likely to have on the future?
"
we have stated from the very beginning
of our atomic energy program, we have no
desire to use this (underground nuclear
explosion) for military purposes. It is to be
used for peaceful purposes."
PRIME MINISTER INDIRA GANDHI
ABC-TV "Issues and Answers,"
June 16, 1974
"Underground nuclear explosions for
peaceful purposes shall be governed by an
agreement which is to be negotiated and
concluded by the parties at the earliest
possible time."
PRESIDENT RICHARD M. NIXON,
SOVIET COMMUNIST PARTY LEADER
LEONID I. BREZHNEV,
Article III, text of the nuclear accords signed in Moscow,
July 3, 1974
MISSING THE POINT
THE shock and surprise in some quarters that greeted the Indian test rests on misconceptions
and misinterpretation of Indian motives.
At bottom, the critics seemed to jump to the conclusion that an underground test could only be the
first step in weapons development. Some levelled an accusing finger at India, charging that she, too,
wanted the power of nuclear weapons while retaining her claim to moral superiority. Some called her
declaration of peaceful purposes unbelievable.
Such reactions conveniently ignore India's consistent policy on atomic power and nuclear energy
since her independence. Prime Minister Nehru, at the time of the founding of India's Atomic Energy
Establishment in 1949, pledged that nuclear power would be used for peaceful purposes and not for
war. The following year, the then-President, Dr. Rajendra Prasad, said: "We have no intention
whatsoever of acquiring, manufacturing, or using such weapons or condoning their use by any state.
Our endeavor in the atomic field will remain confined to the peaceful use of atomic energy."
Prime Minister Indira Gandhi, following the Indian test explosion, re-asserted the policy and said:
"We have no desire to use this for military purposes or as a threat to anybody. It is to be used for
peaceful purposes, and there are programs in which this might be helpful."
Unlike nuclear development in other countries, India's military has no role in her atomic research.
Nevertheless, after the experiment, some countries doubted India's declaration. It seemed that a
nuclear weapons power stockpiling bombs was acceptable. However, if a non-weapons nuclear
power came along and, in the course of its research set off a device, that was a threat, a portent of
nuclear weaponry, and unsettling to relations throughout the world.
An example of this attitude is China. While its first ventures in the nuclear world were greeted with
apprehension, now that "detente" is in the air, that country's continuing tests even in the atmosphere
are ignored, if not accepted.
BUDGET OUTLAYS FOR INDIA'S GROWING NEEDS
$ MILLIONS (1974-1979)-PUBLIC SECTOR
ATOMIC ENERGY
$149
SCIENCE &
TECHNOLOGY
$410
EDUCATION
$2,301
AGRICULTURE
FAMILY PLANNING
& IRRIGATION
$688
$9,882
"In terms of India's budget expenditure, its
HEALTH
atomic energy development program costs
$1,061
about $42 million out of a total central
government budget expenditure of $11.7
POWER
$8,253
billion in fiscal year 1975 or three-tenths of
one per cent of the budget. By way of
contrast, the Indian government plans to
devote over 50 per cent of its federal
expenditure in 1974-75 to economic and
TRANSPORTATION
& COMMUNICATIONS
social development."
$9,487
SENATOR HUBERT H. HUMPHREY
MINING & MANUFACTURING
Congressional Record, May 22, 1974
$11,919
NO VIOLATION
India has a record of peaceful nuclear research outside the area of
weapons.
The Indian test was:
conducted underground with no fallout, and within the limits of
the Partial Test-Ban Treaty of 1963 which forbids testing in the
atmosphere, in outer space, and underwater, but not
underground.
undertaken with 100 per cent Indian technology, materials, and
personnel
part of a program whose benefits are to be shared with the world,
It is disturbing to India to be disbelieved, particularly after the Big
Powers scatter promises of nuclear reactors to non-nuclear countries. Why,
if the new recipients are to be trusted, isn't India's word as good?
BUDGET OUTLAYS
India's national priorities have been questioned. It has been asked how
India can afford the expense of nuclear research. India isn't impoverishing
herself in this regard. Only one-third of one per cent of her planned outlays go
for nuclear research and technology, and the test itself is estimated to have
cost less than half a million dollars, in rupees and not in foreign exchange.
Irrigation and power development, transportation, and agriculture account
for nearly 60 per cent of the budget. Mining and industry, health and family
planning, education and social welfare, and housing account for almost 40
per cent.
BRIGHT HOPE
India hopes to show the world that just because the pioneers in nuclear
power have gone the "weapons route" that death need not be the main goal
of all nuclear experimentation. India hopes to show that the goal can be life. A
knife can kill. But in the hands of a surgeon, it can heal.
"The recent peaceful
underground nuclear
explosion was symbolic of
India's determination not only
to develop a capability in
science and technology, but
also to do so on the basis of
self-reliance."
PRIME MINISTER INDIRA GANDHI
TECHNOLOGY AND PROGRESS
MANY Westerners retain a self-inflicted picture of an India beset by snake-charmers and starving
masses. It somehow hasn't gotten through yet that India, with its democratic system, is making
progress. There seems to be an impression that every rupee's worth of research is a cup of rice less for
someone.
The point is missed. India's masses are being fed. Death no longer appears with a crop failure. To
make headway, technology must play its part. Technology costs, but once it is developed and
employed the returns can be great.
Is there a country in the world that has tried to make a better life for its people without resorting to
technology?
India has been criticized in the past for going in for industrialization. Steelmaking, electronics, and
fertilizer factories, for example, were all targets of critics as being too expensive or unnecessary for a
primarily agricultural economy. Why doesn't she stick to producing rice, India was asked? It is now
accepted by the same critics that India's investment in power, steel, and fertilizer laid the basis for the
"Green Revolution".
India does not have one "priority", but a whole set of related and interdependent priorities:
agriculture, industry, family planning, education, health, communications, nuclear research. Each is
an instrument for creating a good life for all Indians and especially the poorer sections of society.
NET FOREIGN AID AS PERCENTAGE OF TOTAL INVESTMENT IN INDIA
NET FOREIGN AID
TOTAL
INVESTMENT
19%
20%
5%
8%
FIRST PLAN
SECOND PLAN
THIRD PLAN
FOURTH PLAN
(1951-56)
(1956-61)
(1961-66)
(1969-1974)
ECONOMIC COST
Over the five-year period 1969-1974 (the Fourth Five-Year-Plan), India
spent:
$187 million on Science and Technology, of which only $56
million went to nuclear research.
This compares with:
Family Planning: $420 million
Education: $1.1 billion
Mining and Manufacturing: $5 billion
Power: $3.2 billion
Agriculture: $4.6 billion
On the Fifth Five-Year-Plan, the proposed atomic research outlay is
$149 million, 0.3 per cent of the total public sector outlay of nearly $50 billion.
SCIENTIFIC TRADITION
India has a tradition of scientific inquiry. She has long proclaimed her
intention of developing to the fullest her nuclear capability for progress.
Since the early fifties, a number of highly-trained nuclear physicists has been
at work in India in a number of institutions such as the Tata Institute of
Fundamental Research, the Bhaba Atomic Research Center, the Saha
Institute of Nuclear Physics, and the Reactor Research Center conducting
research into fields relating to the use of the atom for the generation of power
and the production of radio isotopes for use in industry, medicine, and
agriculture.
VITAL BENEFITS
The possible uses of controlled nuclear explosions could be to open
underground mines, for prospecting, for tunnel construction and irrigation,
for earth-moving, for diverting rivers, and for building dams. Scientists have
proven that nuclear explosives could be used to crumble deep-lying beds of
lignite coal, so that it could be burned underground, producing a stream of
gas to run conventional electric power plants on the surface.
India, like the U.S.A., which is going to have 30 per cent of its total
energy from nuclear reactors by 1984, foresees a time when nuclear power
will provide enough energy to produce electricity and clean drinking water for
half a million villages in India, sufficient irrigation and seeds for farms, power
for industry, and radio isotopes vital for medicine.
AFGHANISTAN
The Deputy Foreign Minister of Afghanistan, Mr. Waheed Abdulla, said
on June 27 that his country did not consider that India's recent nuclear
test posed any threat to neighboring nations.
ARAB STATES
"India's nuclear explosion for peaceful purposes is a matter of great
pride for Arab States."
MR. IBRAHIM SHUKRALLAH, League of Arab States
BANGLADESH
"The Bangladesh Foreign Minister, Mr. Kamal Hussain, on June 12
welcomed the assurance given by India that her recent nuclear test was
designed for peaceful uses."
IRAN
"The government of Iran believes in the limitation of nuclear weapons
but has affirmative views on the peaceful use of atomic energy and
considers it a great aim of its plans. If India may use atomic energy only
for peaceful purposes, Iran is not against it."
ETTELAAT Tehran
NEPAL
"Whatever be the reactions of other countries to the first Indian nuclear
explosion, it should be regarded as a shining technological
achievement for India
The fact that only Pakistan has refused to
accept India's assurances that its nuclear know-how will be used solely
for peaceful purposes, while many other countries, including Nepal,
have unreservedly done so, means that its protest is linked with its
political problems with India."
NEPAL TIMES, May 20, 1974
SRI LANKA
"The Indian Prime Minister has assured the Sri Lanka government that it
is not India's intention to manufacture nuclear weapons and, therefore,
the Government of Sri Lanka accepts the Indian Prime Minister's
statement."
MR. LAKSHMAN JAYAKKODY, Deputy Minister of Defense and External Affairs of Sri Lanka
NEIGHBORS' NEW-FOUND CONFIDENCE
THE nuclear test was a technological breakthrough hailed throughout
India.
It showed that modern technology can be developed and handled by
rich and poor, white and non-white nations, and this great truth was not lost
among the developing nations of the world.
Most of India's neighbors, like Bangladesh, Bhutan, Burma, Nepal, Sri
Lanka, Afghanistan, and Iran, derived a new feeling of confidence and
security. They know that India has no designs on their territories, and they
have welcomed India's assurances of peaceful intentions and offers of
scientific cooperation.
India's vow of peace and pledge to share its scientific benefits has been
welcomed elsewhere in Africa and Latin America, among developing
countries, and in much of Europe as well.
Outside of the nuclear weapons countries, there seems to be greater
appreciation of this 20th Century phenomenon of atom for peace and its
potential for developing economies and industries. It opens numberless
doors for better, cheaper, and quicker utilization of raw materials and energy
sources such as oil, gas, and coal. It will make possible production of vastly
more electrical power, irrigation, fertilizer, and other products and services
so vital to the task of coping with the world's and India's rising expectations
and needs.
"It is singularly unfortunate
that the peaceful nature of this
nuclear experiment of ours
should be misconstrued and
misread in Pakistan.
Apprehensions aroused in
Pakistan are unfounded. We
value our commitment under
the Simla Agreement to settle
our differences with Pakistan
by peaceful and bilateral
means."
MR. SWARAN SINGH
India's External Affairs Minister,
May 21, 1974
PAKISTANI FEARS BASELESS
PAKISTAN, quite unexpectedly, charged "nuclear blackmail" after the
test. The U.S. Secretary of State, Dr. Henry Kissinger, stated that the
balance of power in South Asia had not been affected by India's test, but that
doesn't seem to have assured Pakistan.
India covets no Pakistani territory. Following the 1971 conflict, India
pulled out of 5,000 square miles of occupied Pakistani territory. And under
the Delhi Agreement, 90,000 prisoners of war were returned to Pakistan.
India offered to reopen communications, resume trade with Pakistan, and
begin the process of normalization and cooperation.
Still, the peaceful underground test by India was received with hostility
by Pakistan, who used it as an excuse to interrupt the process of
normalization by cancelling a long-scheduled Foreign Ministers' meeting.
This is in marked contrast to Pakistan's reaction to China's weapons tests in
the atmosphere, which Pakistan praised as showing that "Asian scientists
can rise to any level and work on the frontiers of knowledge in the most
sophisticated fields".
India believes that if her assurances of peaceful intentions are accepted
and reciprocated by Pakistan, India's newly-developed nuclear capacity
could help the two neighbors. Adoption of India's plan for expanded
research, coupled with a freeze on weapons, could prove to be a basis for a
fruitful era of scientific and economic cooperation and friendship.
COMMON ENEMY
The leaders of Pakistan will come to the conclusion, later, if not now, that
India isn't their enemy. The enemies are the ancient ones and the same for
both, poverty, illiteracy, hunger, unemployment and disease, enemies that
might be overcome by the wise and peaceful utilization of nuclear energy.
"I am glad to note that voices
have been raised in favor of a
comprehensive Test Ban
Treaty permitting tests only
NUCLEAR PROLIFERATION ?
under international controls
and safeguards applicable to
NEARLY thirty years ago, just after the first shattering use of atomic
all countries, including
power, President Harry S. Truman prophetically said: "No nation could long
nuclear weapon countries.
maintain or morally defend a monopoly of the peaceful benefits of atomic
Unlike the NPT it should be
energy."
universal and
Yet the Nuclear Non-Proliferation Treaty has tried to impose just such a
non-discriminatory. If such a
limit on peaceful nuclear development.
Treaty were to be offered to
Hopefully, India's test will force a reassessment of the basic "principles"
the whole world, I can say we
underlying that unequal treaty. As it stands, the treaty virtually forbids any of
its non-weapons country signatories from using nuclear explosions for
would look at such a Treaty
peaceful purposes while permitting nuclear weapons powers to conduct
positively."
explosions for testing weapons.
MR. T. N. KAUL
India's Ambassador to the U.S.
National Press Club Speech, June 17, 1974
India did not, therefore, sign the treaty which is discriminatory, is not a
genuine disarmament measure since it does not prohibit the vertical
proliferation of nuclear weapons by the weapons powers, creates a
monopoly of nuclear technology only for the nuclear weapons powers, and
perpetuates the gap between the developed and developing world.
FRESH LOOK
A review conference of the treaty is only a year away. India's test is proof
that a "have not" country can develop the technology. This should trigger a
new look at the treaty with an eye toward developing a new approach, an
approach that would allow-and encourage-the dissemination of scientific
and technical nuclear knowledge for peaceful economic use while banning
the further spread of weapons and promoting the eventual destruction of the
nuclear weapons stockpile.
A comprehensive Test-Ban Treaty which prohibits all tests for the
development of nuclear weapons and permits explosions for peaceful
purposes only under international regulations that are universal and
non-discriminatory could be the right approach for using nuclear energy for
economic development.
FOR AN ABUNDANT LIFE
WITH every bre kthrough in the history of progress has come a certain mount of confusion,
turmoil, and controversy. It is only later, when the positive benefits have been reaped, that the uproar
dies down and the situation can be seen in perspective. It seems that it must be so with India.
India is cond cting an all-out effort to eradicate poverty and promote the welfare of her people.
Critics of the Indian test kplosion seem to argue that when a nuclear weapons power has an
expl sion, it is a necessary step towards maintaining world security, yet when a borer country
develops its capability to harness atomic energy fol peaceful purposes, it is a angerous
ir esponsibility. In the minds of the affluent and the powerful, money, morality and knowledge are
synonymous.
If a calm appraisal is made of India's aims and efforts in the nuclear field, it will be realized that
fears of an Indian mili ary build-up or runaway proliferatli are largely unfoun ed. For obvious
reasons India has no need and no desire to produce Auclear weapons. The arsenal of death created
and developed by the nuclear club already threatens the surviva of the human race. For any C untry to
add to this would be sheer madness.
In the 27 years of her xistence as an independent nation, India has struggled ong and hard to
bring a good life to her people through the use of 20th Century techn logy. And she has had much
success. The "Gre en voluti n" has, through the use of modern agricultura chniques, made
famine not the fact of life it once was, An expended industry is quickening the pace in all agments
ofth 3 economy and providing more mployment than ever before. New medicines and health
practices are slowly but surely eradicating the scourge of disease and hold the promise for limiting
population gi bwth.
Now the advent of nuclear technology has iven rise to hopes of an even brig ter future. When
this future becomes the present, one in which the India in people are better fed, better clothed, better
taught, better housed and employed through the power provide by the atom, India will have shown
the world a way in hich nuc ear power can be transformed from an instrument of war against mankind
to an effective weapon in the war on want.
VARSA
published for
THE EMBASSY OF INDIA (Economic Wing)
2107 Massachusetts Ave.
Washington 8, D.C.
The Honorable T. N. KAUL
Ambassador of India
2700 Macomb Street, N.W.
Washington, D. C. 20008
9/4/74
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