The Ambassador in Ceylon (Satterthwaite) to the Secretary of State
166. 1. Supplementing Embtel 155, Sept 10, I urge Dept take full advantage presence in Wash Min Fin Jayewardene to make him realize serious view US Govt takes of his govt’s permitting shipment large quantity Ceylon rubber Commie China. Dept will presumably be in strongest position impress Jayewardene with seriousness situation when and if he presents memo mentioned last para Embtel 144, Sept 5 and discussed Embtel 134, Aug. 31.1 We cannot however judge from here importance of services he rendered at Jap peace conf which might influence Dept assume milder position than otherwise.
2. Dept must, of course, reach decision re implementation Kem amendment soon. We also recommend that further conversations, on [Page 2050]possible rubber contract and that decision re US participation in Colombo plan exhibition be deferred for time being.
3. Dept shld bear in mind however that our failure to date carry out terms our VOA contract with Radio Ceylon leaves us in weak position in withdrawing Point IV and Smith–Mundt assistance. Proposal for reimbursement contained Deptel 103, Sept 122 may however please GOC and realization strained relations its failure prevent rubber shipment Commie China may have brought about might put it in mood endeavor pls us re our megawatt proposal described Deptel 99, Sept 10.3 Otherwise we foresee serious difficulties in obtaining GOC approval.
4. As indicated in previous tels I feel Ceylon’s strategic importance make situation unwise for us take unduly harsh counter/measures. We also seem have no choice but support UNP in absence any suitable alternative. Nevertheless, GOC shld if possible be made understand serious view we take of its failure cooperate in this instance with US and UN.
5. Pls keep us fully informed.
- Telegram 134 from Colombo, August 31, not printed, but see footnote 3, p. 2042.↩
- Telegram 103 to Colombo, September 12, not printed, authorized a representative of the Voice of America en route to Colombo to reimburse Radio Ceylon for its relay services (511.814/9–751).↩
- Telegram 99 to Colombo, September 10, not printed, dealt with a proposed megawatt broadcasting station which would be under the nominal control of the Government of Ceylon and whose construction and operating costs would be borne by the U.S. Government (511.46E4/9–1051).↩