033.46E11/12–1054: Telegram

The Secretary of State to the Embassy in Ceylon

secret

167. Prime Minister’s Washington visit believed entirely successful from US Government’s point of view and remarks by Prime Minister and members party lead us believe visit was satisfactory their view. Prime Minister departed for Akron morning ninth accompanied by members party and Ambassador Crowe.

In talk with President substantive matters did not arise.

In hour and fifteen minutes with Secretary Prime Minister referred to Ceylon’s apprehensions regarding India, agreed that communism was primary danger in Asia, stressed economic development as best means combatting communism in area, expressed appreciation fact door still open other Asian countries adhere Manila Pact. Secretary noted Communist China had not yet given proper indications of desire for peace, and discussed difficulty of defining aggression and subversion. Secretary explained US view that under present circumstance strength in face communist threat was best approach to peace, and reviewed for Sir John US position on Chinese Communist representation in the United Nations.1

In talks with Stassen2 and Weeks3 Prime Minister stressed hope for development in Ceylon and US assistance particularly for development of small scale industry, and explained need for resources survey and technical advice. In talk with Stassen Prime Minister gave some indication he might be thinking in terms possible reduction or abandonment rubber trade with Communist China next year, and indicated he believed review Battle Act problems worthwhile on both sides.

Ambassador Crowe had earlier suggested to Sir John on highly tentative basis possibility that if Ceylon were to take action to bring trade [Page 1632] policy into consonance purpose Battle Act including reduction rubber trade by perhaps fifty percent way might be found offer Ceylon modest amount economic assistance. Sir John seemed interested told Crowe he would examine this idea.

In talks US officials Sir John indicated some understanding Battle Act problem and realization that Ceylon would have to do something on its part to become eligible for US aid.

In talk Jernegan, de Soyza said Colombo powers meeting Djakarta would last only day and half and only item on agenda Afro-Asian conference. Showed no enthusiasm for such conference.

Visit given favorable and moderately extensive press coverage.

Memoranda conversations pouched.

Dulles
  1. For documentation on this subject, see vol. iii, pp. 620 ff.
  2. Harold Stassen, Administrator of the Foreign Operations Administration.
  3. Sinclair Weeks, Secretary of Commerce.