of 300 million rupees, which was a third of the estimated revenue in the planned budget for the coming year. Ceylon was depended heavily on rice exports and the global price of rice increased because of the Korean War. R. G. Senanayake, Minister of Trade and Commerce negotiated the Ceylon-China Rubber-Rice Pact, a barter systems which allowed Ceylon to trade its rubber for rice from the People's Republic of China without effecting its foreign reserves. Although the pact was opposed by J. R. Jayewardene, Finance Minister who was pro-United States which was engaged in bitter fighting with the People's Republic of China in the Korean War, pact came into effect. It did not help the government's financial position, with its trade surplus of 345 million rupees in 1951 turning into a trade deficit of 200 million rupees in 1952. Social welfare cuts and the price of rice On this backdrop, the government outlined its policy to cut down on food subsidy as it stated that continuing it would ruin the country in its Throne Speech on 7 July 1953. It proposed abolished the subsidy on rice, making the ration cards called the Hal potha (rice book) obsolete. This effectively increased the price of rice from 25 cents to 70 cents per measure with effect from 20 July. The price of sugar increased. Other social welfare measures were cut down to save government expenditure. Alter on 10 July the free mid-day meal for school children was withdrawn, postal fees and rail fares were increased. Budget day The proposed cuts to social welfare measures, especially the increase in rice prices were met with strong public outcry. All political parties in the opposition agitated against these measures. J. R. Jayewardene as Finance Minister in the afternoon of 23 July 1953, presented the fifth budget to parliament. A large public gathering was organized at Galle Face Green by opposition parties, presided over by S. W. R. D. Bandaranaike, the Leader of the Opposition. Leaders of the Lanka Sama Samaja Party and the Communist Party of Ceylon made speeches condemning government policy. A segment of supporters and workers, who attended the meeting, marched towards the Parliament screaming and gesticulating, in an attempt to storm the House. The Police baton charged and tear gassed the unruly crowds. Small groups left a trail of hooliganism: damaged public property, stoned buses, an indication of the nastiest to come,