892.01/8–2045: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
7276. 1. Brit Embassy presented aide-mémoire August 20 with syllabus of political agreement proposed to be negotiated at Kandy between Dening and “a Thai Liberation Govt” and text of “an agreement on military and quasi-military matters of Allied implication” proposed to be negotiated at Kandy between Mountbatten and the Thai Liberation Govt. Brit have submitted text of latter agreement to CCS29 for directive to Mountbatten to conclude agreement in accordance with its terms.
[Here follow paragraphs numbered 2 and 3 summarizing the proposed political and military agreements.]
4. Dept has recommended to War and Navy Depts30 that (a) no political objection to Mountbatten concluding military agreement with representatives of the Thai Govt; (b) any such agreement must be limited to matters of military concern to the Allies in their war against common enemy; (c) no military agreement should be concluded with Thai by either Brit or American authorities separately while Thailand in theater of Combined Command; (d) directive should be issued fixing exchange rates for military purposes only applicable equally to all baht issued by Thai Govt unless Thai Govt determines differential between prewar issue and issue during JAP [Page 1295] domination; (e) SAC should be instructed not to send troops into Thailand in excess of numbers needed in matters of military concern against common enemy and to withdraw troops as rapidly as such matter concluded.
5. Brit Embassy aide-mémoire, August 15 [14],31 again pressed for Combined Rice Unit. US position stated in Dept aide-mémoire July 731 being restudied. Tentative view is US will agree to some combined organization for brief specified period if negotiated politically with Thailand, but pending such organization US military will make own purchases in Thailand. Sent to London, repeated to Chungking, New Delhi, Colombo.