Despite the U.N. ban on shipping strategic materials to Red China, the British Dominion of Ceylon (not a member of the U.N.) 14 months ago negotiated an agreement with Red China to trade rubber for rice. Last week, after Peking enthusiastically offered to follow up its trade envoys with a good-will mission, new Premier Sir John Kotalawala made clear that the Communists are welcome in Ceylon's counting room, but not in its parlor. "I have sent a reply to the Chinese reminding them we have a trade agreement and to let our relations remain that way," he told newsmen. "I said to them: 'We have not taken anything from you. We sell you rubber, you sell us rice. Ceylon has no other friendship or dealing with Communist China, nor does she want to.' "