134. Memorandum From the Director of the International Cooperation Administration (Hollister) to the Secretary of State1
- Ceylon Situation
As you know, the matter of opening up an aid program to Ceylon is a delicate one, particularly because of the fact that through error in the State Department Ceylon was informed, while the Under Secretary and I were in the Far East and shortly before I arrived at Singapore for the Colombo Conference, that it would be the location of the regional atomic nuclear center for Asia. This involved a somewhat embarrassing disentanglement which I worked out with the Ceylon representatives in Singapore before I delivered the speech on the Asian nuclear center.
I am enclosing a memorandum summarizing as succinctly as I can the present situation.[Page 262]
The matter has been somewhat complicated by the fact that on January 11 a cable which was not cleared with the International Cooperation Administration went to Colombo authorizing the Charge to discuss a bilateral agreement under the President’s Atoms for Peace Plan, intimating that Ceylon was eligible to have half the cost of a reactor paid for by the United States.2 The last paragraph of the enclosed memorandum indicates the problems which this offer raises.
- Source: Department of State, Central Files, 746E.5–MSP/1–1356. Secret.↩
- Telegram 384 to Colombo, January 11. (Ibid., 446E.118/1–1056)↩
- On January 16, Dulles sent a memorandum to
Under Secretary Hoover
concerning the Ceylon aid question. In the memorandum, which
himself, the Secretary remarked:
“I have a feeling that there is some confusion, if not as to policy at least as to performance, with respect to the $5,000,000 grant aid to Ceylon and the research reactor on an experimental basis.
“Do you think I should call a meeting of those concerned on the matter?
“I attach Hollister’s memorandum to me of January 13th.” (Department of State, Central Files, 746E.5–MSP/1–1356)↩