811.20 (D) Regulations/2469: Telegram

The Minister in Thailand (Grant) to the Secretary of State

282. My telegram 280, May 22, 11 p.m. The British will furnish Thailand with two boatloads of fuel products, approximately 14,000 tons including diesel motor oil, gasoline and kerosene, within the next few weeks and negotiations are being continued between the British and the Thai Foreign Office with a view to concluding an agreement under which Britain would undertake to furnish fuel oil to Thailand for 1 year subject to force majeure and Thailand would guarantee a tin and rubber monopoly for Great Britain according to statement of the British Minister whom I called on today. The first oil shipments will likely come from Singapore and one tanker will be utilized, Sir Josiah indicated, although he was again vague regarding the origin of the oil. The British Minister said further that he has agreed to go along with the Thai in their previous commitments to Japan to barter tin valued at approximately 3 million baht for Japanese war planes which were furnished to Thailand during the hostilities with Indochina. In response to my inquiry as to whether there were any other agreements or understandings, Sir Josiah said the British want a guarantee from Thailand similar to that given to Japan at Tokyo recently, namely, that Thailand will not enter into any agreement with a third party which would be directed at Britain economically, politically or militarily, to which reference is made in my telegram 150, March 18 [15], 9 a.m.12 In return London would likely extend the loan or credits desired by Thailand as indicated in my telegram No. 262, May 8, 10 a.m. Sir Josiah added that the credits would likely be extended one half in pound (sterling) and one half in shipbuilding implying that Washington would be called on to cooperate.

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It would be helpful if the Department would keep me currently informed of developments in the conference with the Thai Minister at Washington regarding the articles desired by Thailand, including fuel oil products, iron and steel and a tanker, since inquiries continue to reach me from official sources. I should like to be informed also regarding British approaches in Washington regarding the Thai situation and the results, since the British Minister has indicated that “London is consulting Washington” in these matters.

Grant
  1. Not printed.