846E.2395/7–1351: Telegram

The Secretary of State to the Embassy in Ceylon

secret

29. Deptel 1, July 2 and urtel 27, July 13. Dept and Gen Services Admin again met July 18 with Amb re possible rubber purchase contract. Amb pressed for trans negot Ceylon with US talking Ceylon trade. U.S. said undesirable U.S. talk trade as US trade opposed generally rubber contracts. Existence U.S. contracts with other countries [Page 2033]secret and desirable if possible maintain secrecy re GOC contract. No plans discuss with U.S. trade.

Amb then asked U.S. representative discuss with GOC. U.S. agreed this possible but wished GOC indicate possible favorable reception basic proposal prior sending negot since now uncertain Ceylon interested that type contract. Amb said he interpreted Ceylon request trans talks there as showing GOC interest. US desires GOC state interest in proposal and also indicate possible preference govt to govt sale vs. normal trade channels so representative can be prepared discussion. If GOC regards necessary consult trade prior determining position then may do so without indicating proposal actually made by US.

GOC interested similar contract graphite. Not interested coconut products. Gen Services Admin inquired possibility mica contract and Amb will ask.

Acheson