811.20 (D) Regulations/2469: Telegram
The Acting Secretary of State to the Minister in Thailand (Grant)
68. Department’s 62, May 31, 7 p.m.
1. The Department has held a number of conferences with the British Embassy on the subject of giving economic aid to Thailand and in a letter dated June 17 concurred in the Embassy’s view that it would be advisable to take measures designed to keep Thailand’s economic relations in normal channels and to assist that country to preserve political independence. The Department accepted in principle the proposal to extend economic aid to Thailand with these objects in view and announced the desire of the American Government to purchase Thai tin and rubber in the largest amounts obtainable. The letter stated that the Government would recommend to American oil companies that they cooperate with other interests in supplying limited quantities of petroleum to Thailand and that the American Government would acquaint the Thai Government with our hope that normal political and economic relations of Thailand would be maintained.
The Department informed the Embassy also that the appropriate Government departments would take into consideration the feasibility of the negotiation of a loan by Thailand in the United States not to exceed $3,000,000 in amount and in addition the establishment of credits with the same limitation to assist Thailand to satisfy its needs for such American products as might be available for export.
2. In deciding to take certain steps coordinated with the British plan for economic assistance to Thailand the Department has not overlooked your warning of the possibility that Thailand may have ulterior motives in seeking assistance.
[Page 191]3. For your confidential information, the Department has made it clear to the British Embassy that assurance of obtaining Thai rubber and tin will be a major consideration in determining the scope of American economic assistance.
4. The Thai Minister was orally informed on June 24 that the American Government would be glad to purchase the entire Thai output of rubber and tin or as much thereof as possible, and for its part would welcome from the Thai Government a list of those American products regarded as most important for Thai use. The American Government would examine the list to discover how far it would be able to go in authorizing such exports. Further discussions will take place in Washington.
5. The Thai Minister was told that the British Embassy had informed the Department regarding the program of internal development in Thailand and that the American Government was disposed to assist in carrying out this program provided the Thai Government showed itself disposed to assist the American Government in the matter of rubber and tin. The conversation did not go beyond the general limit just discussed.
6. The Legation will take no initiative with the Thai authorities in this matter, but if approached by them should limit itself to the general statement that the American Government is favorably disposed toward measures likely to contribute, through trade with the United States and Great Britain, to the economic welfare of Thailand and to meeting the needs of the United States. You are authorized to discuss this matter now and at all stages with your British colleague, and you should keep in close touch with him regarding it.