890B.2317/10–2254: Telegram
No. 173
The Chargé in Burma (Acly) to the Department
of State
317. During conversation with Acting Foreign Minister yesterday on another matter he raised question impending economic crisis result deterioration rice market. Said if US wishes retain support nations this area should make effort bolster market for native products (especially rice, rubber and tin) from SEA, possibly resorting some means subsidizing them. Was especially critical what he referred to as our “dumping scheme for agricultural surpluses”.1 Also criticized our continued synthetic rubber production.
[Page 234]Kyaw Nyein referred to plan proposed by Prime Minister (Embtel 300)2 and said hoped some way could be found for US contribute to solution problem surplus rice in SEA. He was not impressed by my arguments to show humanitarian objectives our proposed grain contribution under Colombo Plan.
While recognizing possible US legal difficulties in plan proposed by Prime Minister Kyaw Nyein said he hopes US will at least refrain from making problem worse by subsidized competition in Asian rice market. In view dependence GUB on proceeds rice sales for development and welfare programs he anticipates serious consequences unless something can be done forestall market crisis.
Comment: Kyaw Nyein most powerful anti-Communist influence in Cabinet and is undoubtedly sincerely concerned economic situation. Believe his ideas worthy serious thought.
- Reference is to Public Law 480 or the Agricultural Trade Development and Assistance Act of 1954 (approved July 10, 1954; 68 Stat. 454), which provided for the sale of surplus agricultural commodities for foreign currencies.↩
- Telegram 300 from Rangoon, Oct. 15, reported that U Nu told a press conference on Oct. 14 that he had suggested to Sebald that the United States provide Burma with technicians and equipment in return for commodities such as rice, timber, and rubber which could be used to aid other countries. (790B.5 MSP/10–1554)↩