Foreign Relations of the United States, 1952–1954, East Asia and the Pacific, Volume XII, Part 2

890B.2317/11–1154: Telegram

No. 176
The Secretary of State to the Embassy in Burma

secret

Washington, November 11, 1954—3:03 p.m.

321. Pass Rivenburgh.¹ Our 287.² Burmese Ambassador called [at] his request on Assistant Secretary FE November 8 to advise US Government Burma’s concern US sales surplus commodities under PL 480 may disrupt Burma’s usual marketing rice. Outlined importance rice Burma’s economy and its relation Burma’s economic development plans. Was assured US has and will continue sympathetically take Burma’s problem into account in distributing US surpluses under PL 480 and we striving not disrupt normal marketings South or Southeast Asia. At present we envisaged only small quantity Japan. Ambassador later specifically asked if India and Ceylon were included in South and Southeast Asia and was told US does not intend dispose PL 480 rice these countries. Secretary alluded paradox in that Burma, US and others have surplus food while on other hand Chinese Communists exported foodstuffs though millions Chinese starving as result flood. People other countries also lack sufficient food. Secretary reiterated our sympathetic awareness Burma’s problem and arranged keep Ambassador informed re current developments US programs.

Re your 317³ and 322⁴ existence US rice surpluses currently precludes US Government buying rice other countries. Burma’s proposal would involve basic policy issue applicability other countries and commodities other than rice. Burmese should be given understand PL 480 program being administered so as not to unduly disrupt world prices agricultural commodities or materially impair trade relations among countries free world. You may so inform Burmese.

Dulles

1. Dexter V. Rivenburgh of the Foreign Agricultural Service, Department of Agriculture, was in Rangoon to attend a U.N. Food and Agriculture Organization conference on rice.
2. Telegram 287 to Rangoon, Oct. 27, reported that the Department was reviewing with interested agencies the reply to Kyaw Nyein’s query on rice and U Nu’s proposal. (890B.2317/10–2254)
3. Document 173.
4. Telegram 322, Oct. 25, reported that U Nu reiterated at an Oct. 23 press conference his wish to exchange rice for U.S. aid. (790B.5 MSP/10–2554)