711.922/105: Telegram
The Acting Secretary of State to the Minister in Siam (Neville)
Washington, November 5, 1937—7
p.m.
31. Your 35, November 5, 2 p.m. Department will abandon its insistence on national treatment and offers following substitute for proposal quoted in its telegram No. 24, November 1, 6 p.m.
- 1.
- Retain in the treaty both sentences of first paragraph quoted in that telegram.
- 2.
- Substitute for paragraph 2 one of following two suggestions:
- (a)
- “It is expressly agreed that nationals of the United States of America, including corporations, partnerships and associations, shall be accorded unconditionally all the rights with respect to the acquisition, possession and disposition of immovable property which are, or may hereafter be, accorded in Siam to the nationals, including corporations, partnerships or associations of the most favored nation.”
- (b)
- “It is expressly agreed that nationals of the United States of America, including corporations, partnerships and associations, who are legal residents of or are organized under the laws of any state, territory or possession of the United States of America which accords to nationals of Siam the right to acquire, possess and dispose of immovable property, shall be accorded unconditionally all the rights respecting immovable property in Siam which are or may hereafter be accorded to the nationals, including corporations, partnerships or associations of the most favored nation.”
- 3.
- The Department would very much prefer the formula stated under paragraph (a). You should therefore offer paragraph (b) only as a last resort in the event that the Siamese Government insists on reciprocity.
- 4.
- In the event that the Siamese Government should categorically refuse to incorporate either of these paragraphs in the treaty you should endeavor to have one of them incorporated in the exchange of notes, the Department’s preference still being in the order stated above.
- 5.
- In view of the Siamese Government’s unwillingness to accord national treatment to American nationals you should strongly urge our broad wording of exchange of notes on real property contained in Department’s telegram 24 of November 1, 6 p.m., since most-favored-nation formula in the light of what is being granted to other powers will be of scant assistance in settling our existing real property problem in Siam. You should insist strongly on the broader exchange of notes regardless of whether proposal (a) or (b) be accepted and whether in treaty or exchange of notes.
- 6.
- If you are able to reach agreement on basis of second or fourth paragraph of this telegram but cannot possibly get broader exchange of notes as indicated in Department’s No. 24, of November 1, 6 p.m., you may accept continuation of existing exchange of notes as stated in Department’s telegram No. 29, of November 4, 1 p.m.
- 7.
- If agreement reached on basis of this telegram, proceed to have instruments engrossed. Department expects to send you telegraphic full power in a few hours, but you must not use it unless agreement is reached in accordance with this telegram.
Welles