120.4346E/4–2554: Telegram

The Ambassador in Ceylon (Crowe) to the Department of State

secret
priority

334. One of my Asian colleagues told me confidentially today that he heard that the following six points may come up for discussion at Prime Ministers conference: A cease-fire in Indochina. Offer by the five governments meeting in Colombo to form a joint trusteeship in Indochina. Demand for evacuation of foreign pockets in India. This would include Portugese as well as French pockets. Efforts to ease tension between India and Pakistan. Some sort of loose “no war pact” and perhaps a motion by Burma to speed up expulsion of KMT troops from that country. This confirms same points reported in this morning’s press.

Sunday Times carries interview with Prime Minister by Philip Deane, London Observer correspondent, in which the Prime Minister [Page 1611] goes along with the general idea of a conference-inspired settlement in Indochina but carefully refrains from specific views on how this can be brought about. He also refused to commit himself on issue of US arms aid to Pakistan. He did say, however, that “the refusal of American aid is a form of political pressure which is hardly worthy of a great country like America”. He added that the UK could also do more in the way of financial help for Ceylon.

I believe that if we are ever going to make a gesture to help Sir John that now is the time to do it. He feels that our readiness to consider an offer of aid on the basis that he terminates the China rubber deal (Embtel 333, April 24)1 would do much to strengthen his internal position with the country, and thereby strengthen his stand as an independent at the conference. I think even an affirmative reply to his strong desire to be asked to America would be helpful. As I reported earlier, he feels that he is getting no return from the US for his strong anti-Communist stand. His recent willingness to buck popular opinion by allowing us to fuel in Ceylon US planes carrying French paratroopers to Indochina was an earnest of this basic position. Needless to say he was under strong pressure both from India and from pro-Indian elements in Ceylon to refuse permission.

I certainly do not think that the US should reward every government that is wise enough to adopt an anti-Communist stand but it appears that some sort of gesture from the US at this time would influence both the Prime Minister and the Cabinet. Reply requested prior conference opening April 28.

Crowe