446E.939/8–1252: Telegram
The Chargé in Ceylon (Gufler) to the Department of State1
65. For Dept distribution only. Substance Deptel 45 August 4,2 yesterday discussed separately with Permanent Secretary MEA and Goonetilleke.
[Page 1538]Permanent Secretary made little comment but during conversation stated Goonetilleke hoped if rubber agreement concluded US might grant Battle Act exception and permit GOC exchange for Chinese rice rubber not covered US Ceylon agreement. Goonetilleke later said he hoped for “fighting chance” for exception if rubber exchanged for much needed rice (we gave no encouragement to this hope).
Permanent Secretary said Chi Mission (Embtel 55, August 4)3 wld leave end Aug–early Sept.4 In reply direct question whether mission being sent in real expectation obtaining rice or to destroy basis for opposition claims re possibility effective Chinese help, Permanent Secretary replied the former.
Goonetilleke said (1) our info wld now enable him report to Cabinet on trip and he wld inform US shortly re GOC reaction. (2) He not so concerned with rubber agreement but requires substantial econ and tech aid in order “launch massive attack” on problem increasing local food supply which must be solved if conditions are to remain stable in Ceylon. $1,000,000 annually indicated by Wash as possible extent US participation insufficient to cope with problem. (3) He would appreciate US Dept Agri considering GOC requirements in advice US rice producers. (4) Prime Minister instructed Chi Mission not make any commitment but merely listen and report back any proposals. Both Minister Finance and himself consider only outside chance Chi will make rice available. Mission instructed request 150,000 tons but in his opinion will be lucky obtain 20,000. N. M. Perera, head of LSSP (Trotskyite party) requested permission accompany mission but Prime Minister refused.
I pointed out that additional rice might be available from Indo-Chinese States in return for recognition.
Goonetilleke said he appreciated this and had suggested recognition to Prime Minister. Fonseka5 has been instructed visit Saigon and Prime Minister said if Vietnam makes satisfactory commitment provide rice, he would reconsider question recognition. However, PM relucant have GOC only Asiatic country extend recog.
Today’s Ceylon Daily News carried a front page article by New Delhi correspondent which included quotation from spokesman Chinese Emb New Delhi, “America is trying get Ceylon rubber without [Page 1539] paying fair price. We (Chi) can take as much rubber as Ceylon can give and can give as much rice as Ceylon wants”.
- This telegram was repeated to London for Armstrong as telegram 9, Embassy distribution only.↩
- Supra.↩
- Telegram 55 from Colombo, not printed, indicated that the prospective Ceylonese mission to Communist China would deal with trade, not cultural matters, and it disclosed the tentative composition of the delegation. The telegram continued that if a rubber for rice exchange were agreed upon, the agreement would probably provide for Ceylon’s purchase of Chinese rice at a fixed price, the proceeds of which would be used to buy Ceylonese rubber at the Colombo market price. The Government of Ceylon would not agree to any arrangement which could make Ceylon responsible for delivering rubber or otherwise acting as the agent for Peking. (446E.939/8–452)↩
- Telegram 115 from Colombo, Sept. 15, 1952, reported that the mission departed in two groups on Sept. 11 and 14, 1952 (446E.9331/9–1552).↩
- Deepal Susanta de Fonseka, Ceylon Minister to Burma.↩