846E. 2395/2–2552: Telegram
The Acting Secretary of State to the Embassy in Ceylon
confidential
priority
priority
Washington, February 26, 1952—5:22
p.m.
320. Re Embtel 484, Feb 25.1
- 1.
- US Govt commitment wld be to buy up to maximum of monthly tonnage specified in contract. GSA wld in any event be residual buyer to assure specified total but might buy more actively through established private trade channels depending on current pattern of govt and industry requirements.
- 2.
- No alterations our proposal planned.
- 3.
- GSA willing pay an agreed percentage above the Singapore price for nr one Rss for acceptable types crepe, or cld alternatively pay Singapore average for thin pale crepes.
- 4.
- Dept and GSA agree with Emb questioning of ability Ceylon deliver 5 thousand to 6 thousand tons monthly Rss 1, 2 and 3 and thick pale crepe but this was suggestion Ceylon Amb.
- 5.
- GSA not interested gentleman’s agreement idea, in part for reasons advanced reftel. Our gen view is that by time gentleman’s agreement was developed to pt at which it was thoroughly understood by both sides and workable it wld not be substantially different from contract. Obviously signed contract affords real protection both parties and shld be more effective as means enabling GOC prevent shipments to China without announcement.
Webb