493.46E9/10–1051: Telegram
The Ambassador in Ceylon (Satterthwaite) to the Secretary of State
244. Gufler and I called this morning on Min Fin Jayewardene who returned here evening 7th. After congratulating him on distinguished part he played at Jap Peace Conf I turned subject to Ceylon rubber shipments to Commie China. He made it clear he was deeply impressed by strong views expressed by McGhee and others in Dept. He had [Page 2073] promised discuss problem with PriMin on his return but as I cld understand had been unable do so before PriMin’s departure morning 8th.
I expressed hope we cld find some solution to difficulties caused by recent shipment satisfactory both countries. Further shipments to Commie China wld almost certainly take place however unless GOC found some means preventing them. Jayewardene said he hoped we cld find some means getting PriMin out of his present difficulty and suggested as possible solutions our bulk purchase Ceylon’s rubber or admission Ceylon to UN.
He said he wld like discuss problem with me later on at greater length.
In course conversation I mentioned feeling attributed to certain members GOC that quarrel with US over rubber wld be politically advantageous to UNP. He said he had been so busy seeing his constituents and with meetings since his return he had not heard about this. I also mentioned feeling on part certain GOC members that there was no alternative market for rubber sold China and said Emb had been assured by number leading rubber dealers that every lb. sold China wld otherwise have been purchased by their regular customers at world price.
For full report recent discussion same subject with Min Transport Kotelawala and Home Min Goonetilleke see Embdes 311, Oct 5.
Dept pass London. Sent Dept 244, rptd info London 93.