493.46E9/9–551: Telegram

The Ambassador in Ceylon (Satterthwaite) to the Secretary of State

secret

144. Vaithianathan Perm Secy MEA expressed opinion to Emb rep today that there is no chance GOC will embargo rubber to China either [Page 2042]before or after Mickiewicz departure (Embtel 141, September 4)1 and that Home Min Goonetilleke’s statement (Embtel 136, August 31)2 completely without foundation.

Perm Secy indicated GOC probably will request exception under Kem amendment but in gen terms as little econ justification for request.

Perm Secy said Min Fin Jayewardene will present formal memo in Washington re GOC requirements (Embtel 134, August 31)3 for US financial aid.

Repeated info London 43.

Satterthwaite
  1. Telegram 141 from Colombo, September 4, not printed, reported in part that the Mickiewicz was expected to arrive in Colombo on September 8 and that it apparently had ample bunkers (493.46E9/9–451).
  2. Telegram 136 from Colombo, August 31, not printed, reported that the agent in Colombo of the Polish Ocean Lines had informed the Embassy that Home Minister Goonetilleke had said that the Government of Ceylon wished one shipment of rubber to be made to China in order to be able to inform American officials as a bargaining point in any possible negotiation of a rubber contract with the United States that high prices were obtainable in other markets (493.46E9/8–3151).
  3. Telegram 134 from Colombo, August 31, not printed, informed the Department that the Minister of Finance and the Assistant Secretary of the Ministry, Rajendra Coomaraswamy, might explore the possibility of obtaining grant assistance for a dam project and rural development program while in Washington to attend the annual meeting of the IBRD and IMF. The Embassy suggested that the Department give a sympathetic hearing to Jayewardene and Coomaraswamy if these subjects arose and inform them that it was necessary to postpone any definite consideration of these subjects pending clarification of Ceylon’s situation under the Kem Amendment or the act replacing it. (846E.2614/8–3151)