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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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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 remain with them. If you think any of the information displayed in the PDF is subject to a valid 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 [See storage files for complete files]

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    "ocrText": "The original documents are located in Box K20, folder \"Kaul, T.N.\" of the Arthur\nBurns Papers at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box K20 of the Arthur Burns Papers at the Gerald R. Ford Presidential Library\nSeptember 4, 1974\nR.\nGERALD\nDear Ambassador Kaul:\nFORD Treaty\nChairman Burns has asked me to thank\nyou for sending him a copy of the booklet, \"India's\nWar On Want.\" # He greatly appreciates your\ncourtesy.\nVery truly yours,\nNormand Bernard\nAssistant Secretary of the Board\nThe Honorable T. N. Kaul\nAmbassador of India\n2700 Macomb Street, N.W.\nWashington, D. C. 20008\nNB:slc\nBOARD OF COVERNORS\nFEDERAL\nAMBASSADOR OF INDIA\nDU 2:05\n$441 THE\n2700 macomb Street. 20008 N.W.\n28th August 1974\nDear Dr Burn\nIn view of the interest evinced in\nIndia's recent peaceful nuclear experiment, I\nam enclosing a booklet entitled \"India's War\nOn Want\", which deals with India's plans for\nthe peaceful, progressive, uses of atomic\nenergy.\nI hope you will find it of interest.\nSincerely,\nTukaul\n(T.N.Kaul)\nTriloki nath Kaul\nHon'ble Dr. Arthur Burns,\nChairman,\nFederal Reserves,\nWASHINGTON D.C.\nFORD R. GERALD\nLIBRARY\nJanuary 5, 1976\nDear Mr. Ambansador:\nThank you for sending me a copy of your\nrecords\nEmbassy's pamphlet on recent developments in India.\nI appreciate your consideration in bringing your\nGovernment's views to my attention.\nWith kindest personal regards.\nSincerely yours,\nArthur F. Burne\nHis Excellency T. N. Kaul\nAmbassador of India\nWashington, D.C. 20008\nNB:pg\n#2094\nJanuary 5, 1976\nHis Excellency\nT.N.Kaul\nThe Ambassador of India\nEmbassy of India\n2107 Massachusetts Avenue\nWashington, D. c.\nDear Mr. Ambassador:\nMrs. Burns and I want to thank you for\nthe wonderful Indian tea and to tell you how much\nwe appreciate your thoughtfulness.\nWith every good wish for the New Year,\nSincerely yours,\nArthur F. Burns\nCCM\nOctober 31, 1975\nDear Mr. Ambassador:\nI read with interest the pamphlet on India that\nyou recently sent me. My congratulations to your\nEconomic Wing on a very effective presentation of\nsalient information relating to your nation's economic\ndevelopment.\nSincerely yours,\nArthur F. Burne\nHis Excellency T. N. Kaul\nAmbassador of India\n2700 Macomb Street, N.W.\nWashington, D. C. 20008\nNB:ja\n#1852\nnone\nBOARD OF GOVERNORS\nOF THE\nAMBASSADOR OF INDIA\nFEDERAL RESERVE SYSTEM\nWASHINGTON, D.C.\n1975OCT 29 PM 1: 37\n- THE\nRECEIVED\nOFFICE OF THE CHAIRMAN\n# 1852\nGERALD R.FORD R. FORD\nLIBRARY\nDear Dr. Burns:\nOctober, 1975\nI enclose a copy of a booklet that our Economic Wing has\nhad published on India's economic progress. I hope that you will\nfind it interesting.\nYours sincerely,\nWharl\nT.N. Kaul\nDr. Arthur Burns\nChairman\nFederal Reserve Board\nConstitution Ave, N.W.\nWashington, D.C.\nINDIA'S WAR ON WANT\nPEACEFUL NUCLEAR EXPERIMENT\nINDIA'S underground nuclear detonation in May was truly a \"shot heard\n'round the world,\" although unlike the American Revolution's original \"shot\",\nthe reaction was somewhat mixed.\n\"No nation could long\nThere was welcome, consternation, forecasts of Armageddon, and\nmaintain or morally defend a\ndisappointment. Surprise was registered by some countries, as well as\nmonopoly of the peaceful\nindignation; others welcomed India's declaration that she would use nuclear\nbenefits of atomic energy.\"\ntechnology for peaceful purposes.\nUnderlying the adverse reaction was the question: \"How could India,\nPRESIDENT HARRY S TRUMAN\nland of non-violence and Gandhi, a nation beset by immense economic and\nNavy Day Address, 1945\nsocial problems, engage in a chauvinistic nuclear pyrotechnic display?\"\nThe specter of nuclear proliferation was raised, accusations of betrayal\nwere made. Just what was going on?\nIn truth, this ancient and fabled land of India has always been something\nof a mystery to the West, full of confusing contrasts of the material and the\nspiritual, new and old, wealth and poverty. There is the paradox of a nation,\nconsidered technologically underdeveloped, producing Nobel Prize-winning\nscientists and physicists; sophisticated minds with the knowledge to harness\nthe atom.\nWhy, then, should the underground nuclear explosion have been such a\nshock and a surprise? After all, hadn't India actually embarked on its atomic\nresearch program upon independence, a quarter of a century ago? Doesn't\nIndia have the same-and probably more intense-needs for all the\npromises of nuclear discoveries, including its use to help develop resources\nsuch as natural gas, coal, minerals, etc.?\nMOO\nFAIR QUESTION\nIndia's leaders, from the beginning, have pledged that her atomic and\nnuclear research was dedicated to peaceful uses. Why should an\nunderground explosion, without fallout, fully complying with the Partial\n¥0\nTest-Ban Treaty of 1963, and using India's own technology, be viewed with\nalarm?\nIt would seem fair to ask, \"What's all the excitement about?\" as Prime\nMinister Indira Gandhi indeed remarked. Let's look at the background, let's\nsee what the explosion may mean to India and her neighbors, what is the\npossible economic impact, and what effect is this likely to have on the future?\n\"\nwe have stated from the very beginning\nof our atomic energy program, we have no\ndesire to use this (underground nuclear\nexplosion) for military purposes. It is to be\nused for peaceful purposes.\"\nPRIME MINISTER INDIRA GANDHI\nABC-TV \"Issues and Answers,\"\nJune 16, 1974\n\"Underground nuclear explosions for\npeaceful purposes shall be governed by an\nagreement which is to be negotiated and\nconcluded by the parties at the earliest\npossible time.\"\nPRESIDENT RICHARD M. NIXON,\nSOVIET COMMUNIST PARTY LEADER\nLEONID I. BREZHNEV,\nArticle III, text of the nuclear accords signed in Moscow,\nJuly 3, 1974\nMISSING THE POINT\nTHE shock and surprise in some quarters that greeted the Indian test rests on misconceptions\nand misinterpretation of Indian motives.\nAt bottom, the critics seemed to jump to the conclusion that an underground test could only be the\nfirst step in weapons development. Some levelled an accusing finger at India, charging that she, too,\nwanted the power of nuclear weapons while retaining her claim to moral superiority. Some called her\ndeclaration of peaceful purposes unbelievable.\nSuch reactions conveniently ignore India's consistent policy on atomic power and nuclear energy\nsince her independence. Prime Minister Nehru, at the time of the founding of India's Atomic Energy\nEstablishment in 1949, pledged that nuclear power would be used for peaceful purposes and not for\nwar. The following year, the then-President, Dr. Rajendra Prasad, said: \"We have no intention\nwhatsoever of acquiring, manufacturing, or using such weapons or condoning their use by any state.\nOur endeavor in the atomic field will remain confined to the peaceful use of atomic energy.\"\nPrime Minister Indira Gandhi, following the Indian test explosion, re-asserted the policy and said:\n\"We have no desire to use this for military purposes or as a threat to anybody. It is to be used for\npeaceful purposes, and there are programs in which this might be helpful.\"\nUnlike nuclear development in other countries, India's military has no role in her atomic research.\nNevertheless, after the experiment, some countries doubted India's declaration. It seemed that a\nnuclear weapons power stockpiling bombs was acceptable. However, if a non-weapons nuclear\npower came along and, in the course of its research set off a device, that was a threat, a portent of\nnuclear weaponry, and unsettling to relations throughout the world.\nAn example of this attitude is China. While its first ventures in the nuclear world were greeted with\napprehension, now that \"detente\" is in the air, that country's continuing tests even in the atmosphere\nare ignored, if not accepted.\nBUDGET OUTLAYS FOR INDIA'S GROWING NEEDS\n$ MILLIONS (1974-1979)-PUBLIC SECTOR\nATOMIC ENERGY\n$149\nSCIENCE &\nTECHNOLOGY\n$410\nEDUCATION\n$2,301\nAGRICULTURE\nFAMILY PLANNING\n& IRRIGATION\n$688\n$9,882\n\"In terms of India's budget expenditure, its\nHEALTH\natomic energy development program costs\n$1,061\nabout $42 million out of a total central\ngovernment budget expenditure of $11.7\nPOWER\n$8,253\nbillion in fiscal year 1975 or three-tenths of\none per cent of the budget. By way of\ncontrast, the Indian government plans to\ndevote over 50 per cent of its federal\nexpenditure in 1974-75 to economic and\nTRANSPORTATION\n& COMMUNICATIONS\nsocial development.\"\n$9,487\nSENATOR HUBERT H. HUMPHREY\nMINING & MANUFACTURING\nCongressional Record, May 22, 1974\n$11,919\nNO VIOLATION\nIndia has a record of peaceful nuclear research outside the area of\nweapons.\nThe Indian test was:\nconducted underground with no fallout, and within the limits of\nthe Partial Test-Ban Treaty of 1963 which forbids testing in the\natmosphere, in outer space, and underwater, but not\nunderground.\nundertaken with 100 per cent Indian technology, materials, and\npersonnel\npart of a program whose benefits are to be shared with the world,\nIt is disturbing to India to be disbelieved, particularly after the Big\nPowers scatter promises of nuclear reactors to non-nuclear countries. Why,\nif the new recipients are to be trusted, isn't India's word as good?\nBUDGET OUTLAYS\nIndia's national priorities have been questioned. It has been asked how\nIndia can afford the expense of nuclear research. India isn't impoverishing\nherself in this regard. Only one-third of one per cent of her planned outlays go\nfor nuclear research and technology, and the test itself is estimated to have\ncost less than half a million dollars, in rupees and not in foreign exchange.\nIrrigation and power development, transportation, and agriculture account\nfor nearly 60 per cent of the budget. Mining and industry, health and family\nplanning, education and social welfare, and housing account for almost 40\nper cent.\nBRIGHT HOPE\nIndia hopes to show the world that just because the pioneers in nuclear\npower have gone the \"weapons route\" that death need not be the main goal\nof all nuclear experimentation. India hopes to show that the goal can be life. A\nknife can kill. But in the hands of a surgeon, it can heal.\n\"The recent peaceful\nunderground nuclear\nexplosion was symbolic of\nIndia's determination not only\nto develop a capability in\nscience and technology, but\nalso to do so on the basis of\nself-reliance.\"\nPRIME MINISTER INDIRA GANDHI\nTECHNOLOGY AND PROGRESS\nMANY Westerners retain a self-inflicted picture of an India beset by snake-charmers and starving\nmasses. It somehow hasn't gotten through yet that India, with its democratic system, is making\nprogress. There seems to be an impression that every rupee's worth of research is a cup of rice less for\nsomeone.\nThe point is missed. India's masses are being fed. Death no longer appears with a crop failure. To\nmake headway, technology must play its part. Technology costs, but once it is developed and\nemployed the returns can be great.\nIs there a country in the world that has tried to make a better life for its people without resorting to\ntechnology?\nIndia has been criticized in the past for going in for industrialization. Steelmaking, electronics, and\nfertilizer factories, for example, were all targets of critics as being too expensive or unnecessary for a\nprimarily agricultural economy. Why doesn't she stick to producing rice, India was asked? It is now\naccepted by the same critics that India's investment in power, steel, and fertilizer laid the basis for the\n\"Green Revolution\".\nIndia does not have one \"priority\", but a whole set of related and interdependent priorities:\nagriculture, industry, family planning, education, health, communications, nuclear research. Each is\nan instrument for creating a good life for all Indians and especially the poorer sections of society.\nNET FOREIGN AID AS PERCENTAGE OF TOTAL INVESTMENT IN INDIA\nNET FOREIGN AID\nTOTAL\nINVESTMENT\n19%\n20%\n5%\n8%\nFIRST PLAN\nSECOND PLAN\nTHIRD PLAN\nFOURTH PLAN\n(1951-56)\n(1956-61)\n(1961-66)\n(1969-1974)\nECONOMIC COST\nOver the five-year period 1969-1974 (the Fourth Five-Year-Plan), India\nspent:\n$187 million on Science and Technology, of which only $56\nmillion went to nuclear research.\nThis compares with:\nFamily Planning: $420 million\nEducation: $1.1 billion\nMining and Manufacturing: $5 billion\nPower: $3.2 billion\nAgriculture: $4.6 billion\nOn the Fifth Five-Year-Plan, the proposed atomic research outlay is\n$149 million, 0.3 per cent of the total public sector outlay of nearly $50 billion.\nSCIENTIFIC TRADITION\nIndia has a tradition of scientific inquiry. She has long proclaimed her\nintention of developing to the fullest her nuclear capability for progress.\nSince the early fifties, a number of highly-trained nuclear physicists has been\nat work in India in a number of institutions such as the Tata Institute of\nFundamental Research, the Bhaba Atomic Research Center, the Saha\nInstitute of Nuclear Physics, and the Reactor Research Center conducting\nresearch into fields relating to the use of the atom for the generation of power\nand the production of radio isotopes for use in industry, medicine, and\nagriculture.\nVITAL BENEFITS\nThe possible uses of controlled nuclear explosions could be to open\nunderground mines, for prospecting, for tunnel construction and irrigation,\nfor earth-moving, for diverting rivers, and for building dams. Scientists have\nproven that nuclear explosives could be used to crumble deep-lying beds of\nlignite coal, so that it could be burned underground, producing a stream of\ngas to run conventional electric power plants on the surface.\nIndia, like the U.S.A., which is going to have 30 per cent of its total\nenergy from nuclear reactors by 1984, foresees a time when nuclear power\nwill provide enough energy to produce electricity and clean drinking water for\nhalf a million villages in India, sufficient irrigation and seeds for farms, power\nfor industry, and radio isotopes vital for medicine.\nAFGHANISTAN\nThe Deputy Foreign Minister of Afghanistan, Mr. Waheed Abdulla, said\non June 27 that his country did not consider that India's recent nuclear\ntest posed any threat to neighboring nations.\nARAB STATES\n\"India's nuclear explosion for peaceful purposes is a matter of great\npride for Arab States.\"\nMR. IBRAHIM SHUKRALLAH, League of Arab States\nBANGLADESH\n\"The Bangladesh Foreign Minister, Mr. Kamal Hussain, on June 12\nwelcomed the assurance given by India that her recent nuclear test was\ndesigned for peaceful uses.\"\nIRAN\n\"The government of Iran believes in the limitation of nuclear weapons\nbut has affirmative views on the peaceful use of atomic energy and\nconsiders it a great aim of its plans. If India may use atomic energy only\nfor peaceful purposes, Iran is not against it.\"\nETTELAAT Tehran\nNEPAL\n\"Whatever be the reactions of other countries to the first Indian nuclear\nexplosion, it should be regarded as a shining technological\nachievement for India\nThe fact that only Pakistan has refused to\naccept India's assurances that its nuclear know-how will be used solely\nfor peaceful purposes, while many other countries, including Nepal,\nhave unreservedly done so, means that its protest is linked with its\npolitical problems with India.\"\nNEPAL TIMES, May 20, 1974\nSRI LANKA\n\"The Indian Prime Minister has assured the Sri Lanka government that it\nis not India's intention to manufacture nuclear weapons and, therefore,\nthe Government of Sri Lanka accepts the Indian Prime Minister's\nstatement.\"\nMR. LAKSHMAN JAYAKKODY, Deputy Minister of Defense and External Affairs of Sri Lanka\nNEIGHBORS' NEW-FOUND CONFIDENCE\nTHE nuclear test was a technological breakthrough hailed throughout\nIndia.\nIt showed that modern technology can be developed and handled by\nrich and poor, white and non-white nations, and this great truth was not lost\namong the developing nations of the world.\nMost of India's neighbors, like Bangladesh, Bhutan, Burma, Nepal, Sri\nLanka, Afghanistan, and Iran, derived a new feeling of confidence and\nsecurity. They know that India has no designs on their territories, and they\nhave welcomed India's assurances of peaceful intentions and offers of\nscientific cooperation.\nIndia's vow of peace and pledge to share its scientific benefits has been\nwelcomed elsewhere in Africa and Latin America, among developing\ncountries, and in much of Europe as well.\nOutside of the nuclear weapons countries, there seems to be greater\nappreciation of this 20th Century phenomenon of atom for peace and its\npotential for developing economies and industries. It opens numberless\ndoors for better, cheaper, and quicker utilization of raw materials and energy\nsources such as oil, gas, and coal. It will make possible production of vastly\nmore electrical power, irrigation, fertilizer, and other products and services\nso vital to the task of coping with the world's and India's rising expectations\nand needs.\n\"It is singularly unfortunate\nthat the peaceful nature of this\nnuclear experiment of ours\nshould be misconstrued and\nmisread in Pakistan.\nApprehensions aroused in\nPakistan are unfounded. We\nvalue our commitment under\nthe Simla Agreement to settle\nour differences with Pakistan\nby peaceful and bilateral\nmeans.\"\nMR. SWARAN SINGH\nIndia's External Affairs Minister,\nMay 21, 1974\nPAKISTANI FEARS BASELESS\nPAKISTAN, quite unexpectedly, charged \"nuclear blackmail\" after the\ntest. The U.S. Secretary of State, Dr. Henry Kissinger, stated that the\nbalance of power in South Asia had not been affected by India's test, but that\ndoesn't seem to have assured Pakistan.\nIndia covets no Pakistani territory. Following the 1971 conflict, India\npulled out of 5,000 square miles of occupied Pakistani territory. And under\nthe Delhi Agreement, 90,000 prisoners of war were returned to Pakistan.\nIndia offered to reopen communications, resume trade with Pakistan, and\nbegin the process of normalization and cooperation.\nStill, the peaceful underground test by India was received with hostility\nby Pakistan, who used it as an excuse to interrupt the process of\nnormalization by cancelling a long-scheduled Foreign Ministers' meeting.\nThis is in marked contrast to Pakistan's reaction to China's weapons tests in\nthe atmosphere, which Pakistan praised as showing that \"Asian scientists\ncan rise to any level and work on the frontiers of knowledge in the most\nsophisticated fields\".\nIndia believes that if her assurances of peaceful intentions are accepted\nand reciprocated by Pakistan, India's newly-developed nuclear capacity\ncould help the two neighbors. Adoption of India's plan for expanded\nresearch, coupled with a freeze on weapons, could prove to be a basis for a\nfruitful era of scientific and economic cooperation and friendship.\nCOMMON ENEMY\nThe leaders of Pakistan will come to the conclusion, later, if not now, that\nIndia isn't their enemy. The enemies are the ancient ones and the same for\nboth, poverty, illiteracy, hunger, unemployment and disease, enemies that\nmight be overcome by the wise and peaceful utilization of nuclear energy.\n\"I am glad to note that voices\nhave been raised in favor of a\ncomprehensive Test Ban\nTreaty permitting tests only\nNUCLEAR PROLIFERATION ?\nunder international controls\nand safeguards applicable to\nNEARLY thirty years ago, just after the first shattering use of atomic\nall countries, including\npower, President Harry S. Truman prophetically said: \"No nation could long\nnuclear weapon countries.\nmaintain or morally defend a monopoly of the peaceful benefits of atomic\nUnlike the NPT it should be\nenergy.\"\nuniversal and\nYet the Nuclear Non-Proliferation Treaty has tried to impose just such a\nnon-discriminatory. If such a\nlimit on peaceful nuclear development.\nTreaty were to be offered to\nHopefully, India's test will force a reassessment of the basic \"principles\"\nthe whole world, I can say we\nunderlying that unequal treaty. As it stands, the treaty virtually forbids any of\nits non-weapons country signatories from using nuclear explosions for\nwould look at such a Treaty\npeaceful purposes while permitting nuclear weapons powers to conduct\npositively.\"\nexplosions for testing weapons.\nMR. T. N. KAUL\nIndia's Ambassador to the U.S.\nNational Press Club Speech, June 17, 1974\nIndia did not, therefore, sign the treaty which is discriminatory, is not a\ngenuine disarmament measure since it does not prohibit the vertical\nproliferation of nuclear weapons by the weapons powers, creates a\nmonopoly of nuclear technology only for the nuclear weapons powers, and\nperpetuates the gap between the developed and developing world.\nFRESH LOOK\nA review conference of the treaty is only a year away. India's test is proof\nthat a \"have not\" country can develop the technology. This should trigger a\nnew look at the treaty with an eye toward developing a new approach, an\napproach that would allow-and encourage-the dissemination of scientific\nand technical nuclear knowledge for peaceful economic use while banning\nthe further spread of weapons and promoting the eventual destruction of the\nnuclear weapons stockpile.\nA comprehensive Test-Ban Treaty which prohibits all tests for the\ndevelopment of nuclear weapons and permits explosions for peaceful\npurposes only under international regulations that are universal and\nnon-discriminatory could be the right approach for using nuclear energy for\neconomic development.\nFOR AN ABUNDANT LIFE\nWITH every bre kthrough in the history of progress has come a certain mount of confusion,\nturmoil, and controversy. It is only later, when the positive benefits have been reaped, that the uproar\ndies down and the situation can be seen in perspective. It seems that it must be so with India.\nIndia is cond cting an all-out effort to eradicate poverty and promote the welfare of her people.\nCritics of the Indian test kplosion seem to argue that when a nuclear weapons power has an\nexpl sion, it is a necessary step towards maintaining world security, yet when a borer country\ndevelops its capability to harness atomic energy fol peaceful purposes, it is a angerous\nir esponsibility. In the minds of the affluent and the powerful, money, morality and knowledge are\nsynonymous.\nIf a calm appraisal is made of India's aims and efforts in the nuclear field, it will be realized that\nfears of an Indian mili ary build-up or runaway proliferatli are largely unfoun ed. For obvious\nreasons India has no need and no desire to produce Auclear weapons. The arsenal of death created\nand developed by the nuclear club already threatens the surviva of the human race. For any C untry to\nadd to this would be sheer madness.\nIn the 27 years of her xistence as an independent nation, India has struggled ong and hard to\nbring a good life to her people through the use of 20th Century techn logy. And she has had much\nsuccess. The \"Gre en voluti n\" has, through the use of modern agricultura chniques, made\nfamine not the fact of life it once was, An expended industry is quickening the pace in all agments\nofth 3 economy and providing more mployment than ever before. New medicines and health\npractices are slowly but surely eradicating the scourge of disease and hold the promise for limiting\npopulation gi bwth.\nNow the advent of nuclear technology has iven rise to hopes of an even brig ter future. When\nthis future becomes the present, one in which the India in people are better fed, better clothed, better\ntaught, better housed and employed through the power provide by the atom, India will have shown\nthe world a way in hich nuc ear power can be transformed from an instrument of war against mankind\nto an effective weapon in the war on want.\nVARSA\npublished for\nTHE EMBASSY OF INDIA (Economic Wing)\n2107 Massachusetts Ave.\nWashington 8, D.C.\nThe Honorable T. N. KAUL\nAmbassador of India\n2700 Macomb Street, N.W.\nWashington, D. C. 20008\n9/4/74\n[See storage files for complete files]"
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