With the United States of America introducing the Disposals Policy whereby rubber prices dropped in the world market owing to the release of natural rubber from the US stockpiles, Mrs Bandaranaike asserted the position of Ceylon, stressing that the great importance of the rubber industry to Ceylon and the serious consequences which the decline in rubber prices was having on the country’s economy. Writing to US President John F. Kennedy, Mrs Bandaranaike urged him to abandon the policy which would harm all rubber producing countries. President Kennedy noted thereafter that he was “fully aware of the seriousness of this situation for Ceylon, which depends heavily on its exports of rubber for foreign exchange earnings and for state revenues. I assure you that the United States will conduct its disposal sales of surplus rubber with great care and that we wish to take all possible steps to minimize any adverse effects which these sales may have on the world market.” Keeping to his word, President Kennedy brought about certain modifications to the disposal programme within three weeks.