897.2395/8–151: Telegram

The Secretary of State to the Embassy in Indonesia 1


138. Colombo papers claim US official going Ceylon negot bulk purchase rubber contract. Imply US willing consider 5 year term and six shilling price in return GOC agreement embargo rubber Commie China. Only factual basis these stories is US Govt asked whether GOC interested rubber contract along lines Thai Indo contracts. Absolutely not true more favorable terms offered and GOC specifically told approach made as friendly gesture and with no China angle. Inform Thai and Indo govts soonest. Dept plans discuss with Ceylon Amb Wash and will report discussion.

If approached by press you shld deny knowledge negots or contract such as alleged Colombo papers but shld indicate US always ready discuss proposals of fon govts. Existence Thai Indo contracts still secret and should not be communicated press or rubber trade any country, or to govts UK Ceylon Malaya.

This tel sent Djakarta, Bangkok, Colombo, London, Singapore.

  1. Repeated to Bangkok as telegram 277, to London as 748, to Colombo as 50, and to Singapore as 143.