711.922/106: Telegram
The Acting Secretary of State to the Minister in Siam (Neville)
33. Your 36, November 6, 6 p.m. The Department is very much disappointed in the counterproposals put forth by the Minister for Foreign Affairs. These counterproposals, if accepted, would put the [Page 882] Siamese Government in position to impose drastic restrictions upon the right of American nationals to acquire, possess and dispose of immovable property in Siam and Siam could, within the language of the Siamese counterproposal, maintain the present unsatisfactory situation with regard to land tenure by Americans or render it even more unsatisfactory. In addition, the explanatory exchange of notes suggested by the Siamese Government would make it clear how limited are the rights to be accorded but this would not guarantee that American nationals would be given equality of treatment with other foreign nationals which is of importance to this Government. The Department has given long and careful study to devising a remedy for the present admittedly unsatisfactory situation in a way which would take account of special factors in both the United States and in Siam.
The Department notes from your telegram under reference that the Siamese are afraid of unconditional most-favored-nation treatment in regard to land and that the Siamese Government is not in position to grant American nationals in Siam most-favored-nation treatment in regard to immovable property except on condition of reciprocity.
With a view to meeting the Siamese apprehension with regard to unconditional most-favored-nation treatment, the Department agrees to the deletion of the word “unconditionally” in proposal paragraph 2 (b) of its telegram 31, November 5, 7 p.m.
With regard to the question of reciprocity, the Department points out that proposal 2 (b) is based definitely on the principle of reciprocity. That proposal provides that nationals of certain states which accord to nationals of Siam rights with regard to immovable property shall be accorded most-favored-nation rights in Siam with regard to immovable property. Those states in the United States which do not grant such rights to Siamese nationals are excluded from the operation of the most-favored-nation provision. Should any states subsequently remove such rights in regard to the owning of immovable property by Siamese, Siam would thereby ipso facto be relieved from the obligation to accord most-favored-nation treatment to Americans residents of those states. In the large majority of the states and over an area many times that of Siam Siamese nationals enjoy rights in respect to immovable property. Special attention is invited to the fact that under proposal 2 (b) Siam would be offering merely most-favored-nation treatment in return for national treatment accorded by the majority of states of the United States to nationals of Siam.
In view of the foregoing, the Department finds it difficult to understand why the Siamese Government objects to granting to American nationals that most-favored-nation treatment which it is prepared to grant to nationals of third states, and the Department is of the opinion [Page 883] that the objection of the Siamese Government formulated in counterproposal 1 as quoted in your telegram under reference is based upon misconception as to the basis and purport of this Government’s proposal 2(b).
You should, therefore, explain the situation to the Siamese Government and urge upon it in the strongest possible terms the acceptance of the proposal set forth in the Department’s telegram 31, November 5, 7 p.m., paragraph 2(b).
The provision in the treaty with regard to immovable property would then consist of the first paragraph comprising two sentences as quoted in the Department’s telegram 24, November 1, 6 p.m., and of a second paragraph consisting of the statement quoted in the Department’s telegram 31, November 5, 7 p.m., paragraph 2 (b) with the deletion of the word “unconditionally”.
With regard to exchange of notes with respect to clarification of existing real property rights, you should continue to be guided by paragraphs 5 and 6 of the Department’s telegram 31, November 5, 7 p.m.