846E.2395/7–2751: Telegram

The Secretary of State to the Embassy in Ceylon 1


43. Deptel 29 July 19. Second Secy Ceylon Emb2 brought GOC reply July 25 re possible rubber contract. Requested US send rep Ceylon or instruct US Emb Ceylon discuss contract with rubber trade.3

Ceylon says it can not contract Ceylon trade even informally. US replied it most inappropriate US approach Ceylon trade. US proposal not in form of contract presentable trade. If US were interested in talks with trade, wld do so with US trade.

Dept told Ceylon Emb it wld consult within US Gov re possibility discussions Ceylon Govt to Govt even though Ceylon had not indicated basis negot in which interested.

FYI, GSA agrees ask you discuss contract with GOC. Instructions re US position on terms contract being prepared and will be forwarded next week. Such instructions will also state GOC can itself discuss with Ceylonese trade if it thinks desirable but such talks shld be most discrete in order not disturb market.

  1. Repeated for information to London as telegram 665.
  2. G. S. Peiris.
  3. A memorandum of this conversation of July. 25, not printed, is in file 846E.2395/7–2651.