Foreign Relations of the United States, 1952–1954, Africa and South Asia, Volume XI, Part 2

446E.119/7–3052: Telegram

The Acting Secretary of State to the Embassy in Ceylon¹

secret

Washington, August 4, 1952—6:45 p.m.

45. Dept notes Goonetellike’s comment necessary receive firm proposals (Embtel 46 July 30)² and suggests GOC be informed as follows:

1. Pleased Goonetellike satisfied rice position balance 1952. Dept desired be helpful without regard any other considerations. In this connection reference is made to PM’s statement on Mission to China procure rice (Embtel 47 July 31)³ and wonders if Dept Agri shld continue take Ceylon’s needs into acct in its regular advice to producers planting in US (Deptel 35 July 28).⁴

2. At last mtg between Andrews⁵ and Coomerswamy latter was given ltr signed by former. Substance as fols: Re ur desire for expression amt of aid, tentative allocation present fiscal year approximately 300,000 dols and possibly 500,000 if required. So far as future years concerned willing examine carefully GOC’s needs economic development and discuss ways mtg. Believe GOC and US in best position develop sound program if early agreement reached along lines June 16 ltr (Andrews to Coomerswamy).⁶ FYI Goonetellike given no indication US able make any commitment his proposed five year 100 million dol program.

3. As to rubber contract Dept willing to discuss with GSA possibility reopening negots fol gen lines: Four thousand to five thousand tons monthly 50 percent pale crepe and 50 percent 1X–3 sheet; no commitment on crepe since this normally comes to US through regular channels but wld be willing have provision consult if amt drops below 2500 tons monthly; sheet wld flow through regular commercial channels, GOC obligating itself to deliver and GSA to buy any short-fall at Singapore prices; contract limited to 21 months on basis Aug is first month of commitment.

4. Dept desires indication from GOC that, in view of assistance on rice and willingness provide technical assistance this year and examine future needs this regard (see point 2), it will be prepared meet requirements Battle Act, especially to prevent shipment rubber to Commie China if rubber contract along lines para 3 above agreed upon. This indication necessary before Dept able to proceed discuss possibility rubber contract with GSA (Deptel 35 July 28). Latter very reluctant open question. Emb might wish point out to GOC that on occasion earlier discussions GOC willing embargo shipments rubber to Commie China if rubber contract agreed upon (Embtel 449 Jan 31).⁷ Wld seem govt position stronger than before on basis election results and possibly unpopular action therefore easier to take.

5. Dept will await reply (per para 4 above) before taking any further steps.

Mark reply Dept distribution only.

Bruce

1. This telegram was repeated to London for Armstrong as telegram 810.
2. Supra.
3. Telegram 47 from Colombo, not printed, reported the substance of the Prime Minister’s recent public comments on Ceylon’s planned trade mission to China. The Prime Minister had promised that Ceylon was not going to be limited in searching for sources of rice and that Ceylon would soon send a mission to China to negotiate a rice purchase. Ceylon’s willingness to canvass all sources would apply to any other commodities of prime concern to the Ceylonese people. (400.46E9/7–3152)
4. Ante, p. 1533.
5. Stanley Andrews, Administrator of the Technical Cooperation Administration.
6. Not found in Department of State files.
7. Telegram 449 from Colombo, not printed, reported that Vaithianathan had given the Embassy categorical assurances that Ceylon’s rubber shipments to Communist China would stop the moment a rubber contract was signed with the United States (846E.2395/1–3152).