711.922/72
Memorandum by the Assistant Secretary of State (Sayre)
The Siamese Minister7 called at my request that I might talk over with him the request which he made to me some weeks ago to revise the Siamese-American Treaty by the elimination of Article III relating to monopolies. I explained to the Minister that I had discussed his request with various of my associates in the Department and that, as the matter lay in my mind, the quickest and easiest adjustment would be along the line of an agreement whereby the American Government would assent to the elimination of Article III and the Siamese Government, on its side, would by an exchange of notes agree to refrain during the life of the Treaty from monopolizing the importation, distribution or sale of any commodity to the prejudice of the interests of American nationals, private and corporate, now possessing in Siam immovable property necessary for the importation, distribution or sale of such commodity. I added that it would seem advisable at the same time to clear up any difficulties with regard to the question of land ownership by Americans in Siam and suggested that in the same note the Siamese Government should agree to extend to American nationals the benefits of most-favored-nation treatment with regard to land ownership in Siam. I said to the Minister that I had asked him to come in this afternoon so that I might have the benefit of his own personal reaction to such a proposal before we prepared formal drafts and officially submitted them to him as the representative of his Government.
The Minister at once said that he feared his Government’s reaction to the land ownership proposal would be unfavorable. He said that he feared it would appear like a unilateral arrangement in so far as the Siamese Government would be granting to Americans the right to own land in Bangkok without a corresponding right on their part to own land in the United States. I explained to him that I was not suggesting that the Siamese Government should make an outright grant to the United States of the right to own land in Siam but should merely assure the United States that they would enjoy land ownership rights no less favorable than those granted to other nations. Such an arrangement would leave Siam’s hands free to modify or curtail the right of foreigners to own land in Siam. I further said that the arrangement suggested seemed to me a fair one in that Siam’s granting most-favored-nation treatment with regard to land ownership would, in substance, cost Siam nothing whereas she would be gaining immediately the elimination of Article III which she desires. The [Page 1108] Siamese Minister said “I can only refer it to my Government” and asked if I would give him a copy of the proposed notes to be exchanged. I said that I should be glad to have them put into final form and would give him drafts as soon as this could be done.
He raised no objection to the proposal of an undertaking by the Siamese Government to protect American rights from monopolization of commodities to the prejudice of American interests.
- Phya Aphibal Rajamaitri; the new Siamese Minister presented his credentials August 21, 1935.↩