792.94/130

The British Minister (Hall) to the Assistant Secretary of State (Acheson)

Dear Mr. Acheson: You will remember that at our recent talk on the question of Thailand, the point was raised as to whether His Majesty’s Government was still trying to obtain assurances from the Thai Government that they would not enter into any agreement directed against us nor allow Japan to secure a position of preponderance in Thai affairs. We told you at the time that this political issue had been to some extent shelved in view of the more immediate urgency of the tin and rubber question but that we felt that the conditional offer of assistance which you were now making, altered the position and should allow of the political point being again brought to the fore.

We now have heard from Sir J. Crosby that in his negotiations he is linking the oil supplies with rubber and tin and is reserving financial credits for discussion in connection with securing assurances from the Thai Government as set out above. The Foreign Office have informed us that they are in agreement with this procedure. You may like to keep this further objective in view when your own negotiations arrive at a more detailed stage.

May I take this opportunity of expressing to you my thanks for the help which the U. S. Government has given indirectly to Sir J. Crosby by the information which it gave immediately after our talk to the Thai Minister in Washington, It is my personal opinion that [Page 199] Sir J. Crosby would not have felt justified in recommending the policy which is now being followed had he not been conscious of some improvement in the general situation as a result of your actions.

Yours sincerely,

Noel F. Hall