Office of the Historian

646C.6131/10–2248: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom

confidential
urgent
Washington, October 22, 1948—6 p. m.

4049. For Bliss.1 Dept concerned Ceylon may reach understanding sale rubber USSR before Dept able reply Ceylon Govt note2 sent by courier but not yet recd. Depending on magnitude, duration, and terms, contract could entail serious Sov economic penetration.

Ascertain soonest progress London Ceylon-CRO discussions from Brit but not Ceylonese. If likelihood deal persists, using precautions specified Deptel 4003, Oct 193 request Brit use best offices soonest with Goonetilleke4 to prevent deal. Express strong regret Brit stimulated negotiation knowing US views Sov rubber purchases.

[Page 575]

Unable understand Brit reasoning re lack evidence Sov stockpiling. USSR 1948 imports estimated 100,000 tons. Consumption 30,000 (tel 85 to London from Moscow5).

Kennedy Chief IR6 familiar this question now at tin meeting The Hague being cabled re availability London about Oct 30 assist Emb if needed.

Lovett
  1. Don C. Bliss, Counselor of Embassy for Economic Affairs at London.↩
  2. The note under reference is not printed. It stated that the Soviet trade representative in London had approached the Ceylonese Government regarding the purchase of Ceylon’s rubber output, mostly in sheet form. Ceylon was not anxious to enter into such an agreement in view of the value and use of the rubber in wartime, and Ceylon was reluctant to prejudice the interests of the United States and the United Kingdom.↩
  3. Not printed; it urged that in contacting Ceylonese or British officials regarding the possible purchase by the Soviet Union of Ceylonese rubber the utmost discretion be used in order to avoid the implication that the United States was willing to meet the Soviet offer or prevent Ceylon from possibly bidding for a higher Soviet offer (646c.6131/10–1148).↩
  4. Sir Oliver Goonetilleke, Ceylonese Minister for Home Affairs.↩
  5. Not printed.↩
  6. Donald D. Kennedy, Chief, International Resources Division (IR); Kennedy was chairman of the United States Delegation to the Third Meeting, International Tin Study Group, being held at The Hague.↩