493.46E9/9–2051: Telegram
The Ambassador in Ceylon (Satterthwaite) to the Secretary of State
181. From remarks by MEA officials it appears Sept 18 aide-mémoire transmitted Embtel 175 Sept 19 may have been put together in MEA on own initiative in endeavor record best possible case for Ceylon in view rambling and inconsistent nature arguments presented orally by PriMin response my reps on Sept 17. Gen illogical nature and inconsistencies give impression that drafters paper did their hasty best with what they must feel will not appear to US as good case. For example note inconsistency between protestations ideological purity in para 2 and assertions friendliness to US and appeal to US pursue “farsighted policy genuine united action” in para 6 on one hand and extreme preoccupation with Ceylonese econ self-interest shown throughout document on other.
Principal arguments set forth to justify GOC posit paras 3, 4, and 5 show strong preoccupation with Ceylonese econ self-interest, belief in uniqueness Ceylon as compared with other south Asian countries (note para 5 sentences 2 and 3) and conviction that Ceylon has already made sacrifices, particularly during World War Two, that have not been adequately appreciated or compensated. Paper also attempts show that Ceylonese efforts obtain coop in deserved stabilization her [Page 2062] rubber market have been frustrated and that unwillingness GOC impose destinational control on rubber exports arises from our failure extend her support in merited stabilization her rubber market.
Were we confronted with mere exercise in logic, aide-mémoire wld be easy answer by employing its own inconsistencies against it, by citing attitude Ceylon at London and Rome rubber mtgs, by pointing out that prices commodities imported by Ceylon have also been controlled and that US and other countries made much greater sacrifices during World War Two.
Re arguments last sentence para 3 it shld be noted: (a) GOC recd US approach with minimum interest (b) US decision defer conversations re contract taken only after GOC refused embargo rubber and arrangements completed for shipments Commie Chi (c) Emb has observed no indication willingness imposed destinational control implied this sentence.
It is difficult however meet polit argument set forth by PriMin and referred to in sentence one para 5 of aide-mémoire. We might argue that Commie opposition in Ceylon will in any event oppose govt in coming elections and that PriMin wld gain by taking strong stand in support UN” and non-Commie world in hope consolidating support from non-Commie elements.
PriMin is however in posit being final auth on own polit posit and necessities arising from that posit. Furthermore both acting UKHC and GovGen are convinced validity PriMin’s contention re domestic polit situation and believe him justified in fearing loss support his own party members.
I recommend that announcement US Govt cannot extend Ceylon exception under Kem amendment or Battle bill refer merely to circumstances that Ceylon has permitted export to Commie Chi of strategic material in conflict with UN res. I also recommend that announcement contain statement to effect we especially regret necessity taking this action in view excellent coop GOC has extended to other UN activities and strong posit it has taken in combatting Commie ideologies.
Above recommends made in thought that we shld handle present controversy in such way as to avoid insofar as possib unduly antagonizing GOC or driving it into position sharp public opposition.
Aside from fact that present govt is most friendly and pro-Western we are likely have, we shld bear in mind that if its refusal impose destinational control on rubber exports becomes subj of lively public controversy it may endeavor dramatize its stand throughout Asia as brave little country that stood up to great west Colossus. Fol posit taken by Ceylon rep at San Francisco its “defiance” of US might then [Page 2063] put it in a posit to tell rest of Asia that it is not afraid to defend interests of Ceylon against both Sov and Amer pressures.
While I am convinced we must without fail withhold econ assist from Ceylon for time being I also feel we shld endeavor persuade GOC change its policy as soon as possible so that we may resume our former close relations and thus avoid driving Ceylon into psychological state of illogical opposition which has recently characterized fon pol Afghanistan, Iran and several Arab states.
I strongly urge Dept not announce refusal grant exception under Kem amendment or Battle Bill until Emb has recd advance notice and has had time inform GOC date it will be made public. Pls also inform Emb soonest in detail full scope and significance steps which Dept will take in withholding econ assistance.
Rptd info London 76.