846E.2317/3–752: Telegram

The Ambassador in Ceylon ( Satterthwaite ) to the Department of State 1

confidential

503. Vaithianathan PermSec MEA called on me yesterday and said he had come at personal request PriMin Senanayake who gravely concerned over rice situation (Embtel 478 Feb 21).2 Present stores and expected arrivals wld carry country through mid May with possib addit quantities which wld supply Ceylon until early June. After that only most intangible prospects exist. Suppliers’ promise becoming increasingly less convincing.

PriMin urged US assistance in this unprecedented situation. Perm-Sec suggested assistance might take form rice loan patterned on India wheat loan. After I explained position to him however he seemed realize this not feasible. He asked however whether US assistance cld be obtained in procuring rice for which GOC wld pay. In latter connection he mentioned there wld be no difficulty making payment in sterling but problem exists if payment required in dols. I suggested possib drawing on dol pool. Later Food Min Ratnayake spoke to me on same subject and himself mentioned dol pool as possib solution.

Altho I agree fully with PriMins estimate seriousness situation (Embtel 446 Jan 30)3 it is difficult visualize practical measures US [Page 1513] cld take to assist. I wld welcome Depts comments. In any event info wld be helpful re current US stocks available for immed export and stocks estimated available for export beginning May 1952. Also whether any aid anticipated from Bangkok.

Satterthwaite
  1. This telegram was repeated to Bangkok as telegram 6, Rangoon as 8, and Saigon as 1.
  2. Not printed.
  3. Ante, p. 1504.