The Secretary of State to the Embassy in Ceylon 1
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.