646C.6131/10–2348: Telegram
The Acting Secretary of State to the Embassy in the United Kingdom
4104. Bliss from Nitze.1 Appreciate info urtel 4602 Oct 23.2 Dept considers important discuss immed in detail with responsible UK [Page 579] officials and report to Dept their view statistical position Sov rubber stockpiling. Emb Moscow also requested take above action.
Dept believes only convincing refutation data cited Dept 40493 can justify Brit failure take effective counteraction. If data correct, Sov contracts for 1948 rubber shipment provide about 2 years stockpile. USSR has recd substantial portion quantity ordered. Lacking convincing refutation, considered essential Emb press FonOff consider necessity prevent Sov stockpiling one few items important Sov mil position and not significantly available within Sov orbit.
View above considerations and Dept’s serious concern re influence contract for bulk Ceylonese output might give Sov in Ceylon economic and political matters, considered essential responsible Brit official convey to Senanayake4 before return Ceylon undesirability acceptance Sov offer cited urtel. Ceylon note gives no details. If practicable inform Dept soonest specific terms.
Fyi only, on basis present view Sov rubber position, Dept actively considering desirability and feasibility: (1) instruction to Harriman that in view shipments already made to USSR, rubber now 1–B list, be considered prohibited item equivalent 1–A in accordance provision restricting export 1–B items to limited quantities needed current consumption. Harriman would be requested negotiate agreement such prohibition with participating countries; (2) as necessary prevent further large Sov purchases, negotiating with rubber producers agreement recognizing common interest preventing Sov stockpiling, agreeing selling US for stockpile at agreed reasonable prices rubber otherwise available for Sov purchase, and preventing measures undesirably stimulating production.
Does Emb desire Kennedy come over from Hague? (Deptel 4049, Oct 22.) [Nitze.]
- Paul H. Nitze, Deputy to the Assistant Secretary of State for Economic Affairs.↩
- Not printed; it reported that following discussions between British and Ceylonese officials in London the British Commonwealth Relations Office had assured the Embassy in London that although Ceylon had not definitely turned down the Soviet offer to purchase rubber, no deal was likely in the near future and the Ceylonese were more interested in selling to the United States than to the Soviet Union (646c.6131/10–2348).↩
- October 22, p. 574.↩
- D. S. Senanayake, Ceylonese Prime Minister.↩