Foreign Relations of the United States, 1952–1954, Africa and South Asia, Volume XI, Part 2

846E.2317/6–2852: Telegram

The Chargé in Ceylon (Gufler) to the Department of State¹

secret

Colombo, June 28, 1952—3 p.m.

691. Re Deptel 463, June 27 [26].² Present Ceylon rubber export–rice import problem appears as much exchange as rice shortage problem. Falling off direct US rubber purchases decreased dollar earnings at time when rice suppliers will only with delay and reluctance sell rice to non-dollar purchasers. Burma reportedly supplying rice for dollars to Japan, Philippines and Indonesia. Siam supplying Indonesia for dollars. Ceylonese conclude that only with dollars can their rice supply be made assured.

GOC decision send Goonetilleke mission urged by Finance Minister, supported by Central Bank whose primary concern exchange problem, Food Minister Goonetilleke and Prime Minister himself. Suggestion possibility rice-rubber agreement on lines reported Cuban-US-rice-sugar agreement introduced in Ceylonese discussions by Prime Minister himself.

. . . . . . .

This tel being repeated info London, Rome. Dept may desire repeat those offices its tel 463, June 27 [26]; Embtel 685, June 25.³

Gufler

1. This telegram was repeated for information to London as telegram 182 and to Rome as telegram 3.
2. See footnote 2, supra.
3. Supra.