711.922/107: Telegram
The Acting Secretary of State to the Minister in Siam (Neville)
Washington, November 9, 1937—6
p.m.
34. Your No. 37, November 8, 8 p.m.
- 1.
- Department believes that we are in agreement with the Siamese, and that they mean to accord complete most-favored-nation treatment automatically to nationals of states which permit them to own land. However, the language in the telegram under reference is ambiguous. “Upon the principle of reciprocity” may be open to the interpretation that the Siamese could insist on all our states according them the right to own land. It is also open to the objection of inaccurately describing the situation, inasmuch as Siamese enjoy national treatment in the majority of our states and in return, we would be getting only most-favored-nation treatment. “Upon the principle of nondiscriminatory treatment” is ambiguous inasmuch as it may mean national as well as most-favored-nation treatment. Neither does it assure that Siam will automatically give our citizens complete most-favored-nation treatment, inasmuch as it may be interpreted by the Siamese to enable them to deny Americans full equality of treatment as against other foreign nationals on the ground that the treatment accorded to Siamese by third countries is deemed by the Siamese more favorable than that which they receive in the United States.
- 2.
- The Department desires to avoid all ambiguities and sources of possible future misunderstanding. It believes that the language set forth in Department’s No. 31 of November 5, 7 p.m., achieves this result and as pointed out in Department’s No. 33 of November 7, 9 p.m., embodies the principle of reciprocity. However, with a view toward meeting the Siamese desire that this concept be explicitly referred to, you are authorized to propose the insertion of the words [Page 885] “in return” between the words “shall” and “be accorded” in paragraph 2 (b) of Department’s telegram No. 31 of November 5, 7 p.m.
- 3.
- The real property provisions for the treaty would then be as follows: First two sentences of first paragraph quoted in Department’s No. 24 of November 1, 6 p.m. Then add the following: “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 in return be accorded 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.”
- 4.
- Department accepts Siamese proposal with reference to exchange of notes as to real property both with respect to introduction and substance.
- 5.
- As to exchange of notes on monopolies, Department must insist upon retaining the introductory statement contained in Department’s No. 30 of November 4, 7 p.m., in view of the fact that Article 4 of treaty relating to monopolies has been deleted.
- 6.
- You are authorized to sign, subject to the foregoing.
Welles