845.24/12–2644
The Secretary in Charge at New Delhi (Lane) to the Secretary of State
[Received January 8, 1945.]
Sir: I have the honor to refer to the Mission’s airgram A-105 of November 27, 11 a.m. (1944),49 reporting a discussion of the question of import control with the Chief Controller of Imports of the Government of India,50 and to enclose a copy49 of a statement on “Registration of Post-War Requirements of Capital Goods” issued to the press by the Commerce Department of the Government of India on December 22, 1944.
[Page 270]The statement, which has been communicated to the Chambers of Commerce of the country, explains that Indian firms which have or intend to place orders for capital goods overseas must register them with the Chief Controller of Imports of the Government of India. An exception to the registration requirement is made in the case of orders for capital goods which are expected to be shipped before July 1, 1945, in which case an ordinary import license will be all that is required. Also exempted from registration will be orders for machine tools with an estimated f.o.b. value of less than Rs. 10,000 ($3,000) and other capital goods with an estimated value of less than Rs. 25,000 ($7,500).
The procedure outlined in the statement is as follows:
. . . . . . .
From the statement, it appears that a firm in India wishing to import capital goods from the United States on which shipment is expected to be made prior to July 1, 1945, needs only the ordinary import permit and priority for dollar exchange. On goods to be shipped after that date, the importer will have to obtain the registration of the order with the Chief Controller of Imports (if for a machine tool with a f.o.b. value of $3,000 or over or other capital equipment with a f.o.b. value of $7,500 or over). He must also obtain acceptance of the order by a United States supplier and notify such acceptance to the Chief Controller of Imports. The importer will also require an import license with a right to dollar exchange, which will not be issued unless the above conditions have previously been met. Registration of orders for the purchase of capital goods outside the sterling area will not be accorded unless necessity and urgency can be shown.
Apparently a prospective importer of capital goods will be expected to exhaust all possibilities of obtaining them in the sterling area before having recourse to United States, Canadian, or Swiss suppliers. Knowledge of the supply position in the sterling area, therefore, may well prove a useful guide to American manufacturers in deciding whether inquiries from India deserve serious attention.
Respectfully yours,