Foreign Relations of the United States, Diplomatic Papers, 1945, The British Commonwealth, The Far East, Volume VI

741.92/9–1045

The British Embassy to the Department of State ⁵¹

September 10, 1945

Text of Heads of Agreement To Be Presented by Mr. Dening (Chief Political Adviser to Admiral Mountbatten) on Behalf of His Majesty’s Government to Representatives of the Regent of Siam at Kandy

The attitude of His Majesty’s Government towards Siam will depend on the degree of her co-operation in matters arising out of the termination of hostilities against Japan and on her readiness (a) to make restitution to His Majesty’s Government and their allies for the injury done to them in consequence of Siam’s association with Japan and (b) to ensure security and good-neighbour relations for the future.

The particular steps which His Majesty’s Government would expect the Siamese Government to take as a condition of recognising it and of agreeing to terminate the state of war, are as follows:—

a. measures of repudiation

1. Repudiate the declaration of war made on Great Britain on the 25th January 1942 and all measures pursuant to that declaration which may operate to the prejudice of Great Britain and her Allies.

2. Repudiate the Alliance entered into by Siam with Japan on the 21st December 1941, and all other treaties, pacts or agreements concluded between Siam and Japan.

3. Recognise as null and void all acquisitions of British territory made by Siam later than the 7th December 1941 and all titles, rights, properties and interests acquired in such territory since that date by the Siamese State or Siamese subjects.

b. measures of restitution and readjustment

1. Take the necessary legislative and administrative measures to give effect to Section A above including in particular:—

(a) Repeal all legislative and administrative measures relating to the annexation by, or incorporation in, Siam of British territories acquired later than the 7th December 1941.

(b) Withdraw as may be required by the competent civil or military authority all Siamese military personnel from British territories annexed by, or incorporated in, Siam after the 7th December 1931; and all Siamese officials and nationals who entered these territories after their annexation by, or incorporation in, Siam.

(c) Restore all property taken away from these territories. This would include currency except to the extent to which it could be established that fair value had been given in exchange.

(d) Compensate loss or damage to property, rights and interests in these territories arising out of the occupation of these territories by Siam.

(e) Redeem in Sterling out of former Sterling reserves, Siamese notes collected by the British authorities in British territory occupied by Siam since 7th December 1941.

2. Take all possible steps to ensure the prompt succour and relief of all British prisoners of War and internees held in Siam or in any territories purported to have been annexed by or incorporated in Siam,

(a) At Siamese expense provide them with adequate food, clothing, medical and hygienic services, and transportation, in consultation with the Allied Military Authorities.

(b) Undertake to enter into an agreement with His Majesty’s Government for the mutual upkeep of war graves.

3. Assume responsibility for safeguarding, maintaining and restoring unimpaired, British property, rights and interests of all kind[s] in Siam and for payment of compensation for losses or damage sustained. The term “property, rights and interests” to include, inter alia, the official property of His Majesty’s Government, property whose ownership has been transferred since the outbreak of war, pensions granted to British Nationals, stocks of tin, teak and other commodities, shipping and wharves, and tin, teak and other leases and concessions granted to British firms and individuals prior to the 7th December 1941, and still valid at that date.

4. Desequestrate British banking and commercial concerns and permit them to resume business.

5. Accept liability, with the addition of interest, at an appropriate percentage, in respect of payments in arrears, for the service of the loans and for the payment of pensions in full since the date when regular payments ceased.

6. Undertake to conclude as and when required, with the Supreme Allied Commander South East Asia Command or in such other manner as may be satisfactory to His Majesty’s Government, an agreement or agreements to cover all or any of the matters specified in the Annex to this document.

c. measures for post-war strategic co-operation

1. Recognise that the course of events in the war with Japan demonstrates the importance of Siam to the defence of Malaya, Burma, India and Indo-China and the security of the Indian Ocean and South West Pacific areas.

2. Agree, until such time as she is admitted to membership of the United Nations, to carry out such measures for the preservation of international peace and security as the United Nations Organisation may require.

3. Undertake that no canal linking the Indian Ocean and the Gulf of Siam shall be cut across Siamese territory without the prior concurrence of His Majesty’s Government.

d. measures for post-war economic co-operation

1. Agree to take all possible measures to re-establish import and export trade between Siam, on the one hand, and neighbouring British territories on the other, and to adopt and maintain a good-neighbourly policy in regard to coastal shipping.

2. Undertake to negotiate with His Majesty’s Government in the United Kingdom as soon as practicable a new Treaty of Commerce and Navigation and a Consular and Establishment Convention based on the principles in Clause 4 below.

3. Undertake to negotiate with the Government of India as soon as practicable a new treaty of commerce and navigation based on the principles in the following clause.

4. Pending the conclusion of the Treaties and convention referred to in Clauses 2 and 3 above, undertake to observe the provisions of the Treaty of Commerce and Navigation signed at Bangkok on the 23rd of November 1937 and, in addition, not to enforce measures excluding British commercial or industrial interests or British professional men from participation in Siamese economy and trade (subject to such exceptions, if any, as may be agreed between his Majesty’s Government in the United Kingdom or the Government of India and the Siamese Government) or requiring them to maintain stocks or reserves in excess of normal commercial, shipping, industrial or business practice, provided that if the Treaties and convention have not been concluded within a period of three years, this undertaking shall lapse unless it is prolonged by agreement. Nothing in this Clause shall be deemed to preclude the grant of equally favourable treatment to nationals or enterprises of any or all of the United Nations.

5. Undertake to negotiate a Civil Aviation Agreement in respect of all British Commonwealth Civil Air Services not less favourable than the Agreement of 1937 with respect to Imperial Airways.

6. Undertake to participate in any general international arrangement regarding tin and rubber which conforms with such principles regarding commodity arrangements as may be agreed by the United Nations Organisation or its Economic and Social Council.

e. regularisation of siamese position in relation to bilateral and multilateral treaties and her membership of international organisations

1. Agree to regard as in force such bilateral treaties between the United Kingdom of Great Britain and Northern Ireland and Siam as may be specified by His Majesty’s Government in the United Kingdom, subject to any modifications His Majesty’s Government may indicate, and to regard as abrogated any such treaties not so specified.

2. Agree to regard as in force any multilateral treaties, conventions or agreements concluded prior to the 7th December, 1941 (a) to which Siam was then a party, (b) to which Siam was not then a party and which may be specified in a list to be furnished to the Siamese Government. Agree also to accept any modifications thereto which may have come into effect in accordance with the terms of such instruments since that date.

3. Pending admission to any international organisation set up since the 7th December, 1941 being an organisation of which His Majesty’s Government is a member, agree to carry out any obligations arising out of, or in connection with, any such organisation or the instrument constituting it, as may at any time be specified by His Majesty’s Government.

[Annex]

Military Annex

Points to be covered in an agreement or agreements with the Supreme Allied Commander or in such other manner as may be satisfactory to His Majesty’s Government.

The Siamese Government shall agree:—

1. To dissolve any military, para-military or political organisation conducting propaganda hostile to the United Nations.

2. To hand over to the Allied military authorities all vessels belonging to the United Nations which are in Siamese ports.

3. To take all possible steps to ensure the prompt succour and relief of all Allied prisoners of war and internees; and at Siamese expense to provide them with adequate food, clothing, medical and hygienic services, and transportation, in consultation with the Allied military authorities.

4. To assume responsibility for safeguarding, maintaining and restoring unimpaired Allied property, rights and interests of all kinds in Siam and for payment of compensation for losses or damage sustained.

5. To desequestrate Allied banking and commercial concerns and permit them to resume business.

6. To co-operate with the Allied military authorities in

(a) disarming Japanese forces in Siam and handing them over to the Allies;

(b) interning all Japanese (and German) nationals and holding them at the disposal of the Allies: and

(c) seizing and delivering to the designated Allied military authority all war material and other materials and supplies under Japanese control, including naval and merchant vessels of all kinds, aircraft, weapons and ammunition, motor and other transport, military stores including aviation and other petrols and fuels, stocks of food and clothing, wireless equipment and any other property whatsoever of the Japanese armed forces.

7. To prohibit trading with the enemies of the Allies so long as the Allies prohibit trade generally with these enemies.

8. To hold all Japanese (and other enemy) property at the disposal of the Allies.

9. To co-operate in the apprehension and trial of persons accused of war crimes or notable for affording active assistance to Japan.

10. To hand over to the Allied military authorities all alleged renegades of Allied nationality.

11. For so long as may be necessary for the conclusion of all matters of military concern to the Allies arising out of the settlement of the war with Japan:—

(a) To maintain and make available to the Allied military authorities such of the Siamese naval, land and air forces with their ports, airfields, establishments, equipment, communications, weapons and stores of all kinds as may be specified, and in addition such land buildings and storage as may from time to time be required by the Allied military authorities for the accommodation of troops and stores.

(b) To place at the disposal of the Allied military authorities ports and free traffic facilities in and over Siamese territory, as required.

(c) To provide free of cost all other supplies and services and all Siamese currency that may be required by the Allied military authorities.

(d) To arrange in accordance with the wishes of the Allied military authorities for press and other censorship and control over radio and telecommunication installations or other forms of intercommunications.

(e) Except in any areas which may be placed, by agreement between the Siamese Government and the competent Allied military authority, under the direct administration of that authority, to comply in matters of civil administration with all requests which the competent Allied military authority may make in the pursuance of his task.

(f) To arrange for facilities for the recruitment of local labour and for the utilisation in Siamese territory of industrial and transport enterprises and of means of communication, power stations, public utility enterprises and other facilities, stocks of fuel and other materials, in accordance with the requirements and instructions of the competent Allied military authority.

(g) To negotiate an agreement granting judicial and other immunities for Allied forces in Siam.

12. To make Siamese merchant vessels, whether in Siamese or foreign waters, subject to the control of the Allies for use as may be required in the general interests of the Allies, for so long as arrangements continue in force for pooling Allied shipping.

13. To agree to the setting up of a military mission, to be appointed by the appropriate military authority to advise on the organisation, training and equipment of the Siamese armed forces.

14. To control banks and business, foreign exchange and foreign commercial and financial transactions as required by the Allies, for so long as may be necessary for the conclusion of all financial and economic matters arising out of the war with Japan.

15. To undertake to prohibit, except in accordance with the directions of the Combined Boards acting on behalf of the Allies or of such similar authority as may replace these Boards, any exports of rice, tin, rubber and teak and to regulate trade in and production of these commodities until, in the opinion of the appropriate organisation which may be set up by the United Nations, the world scarcity in these commodities arising out of the war with Japan no longer exists.

16.

• (a) To make available free of cost at Bangkok, as quickly as may be compatible with the retention of supplies adequate for Siamese internal needs, one and a half million tons of sound white rice, or, if so agreed by the authorities appointed by the Allies for the purpose, the equivalent quantity of paddy.
• (b) Thereafter, for so long as, in the opinion of the Combined Boards or other authority acting on behalf of the Allies, a world shortage of rice continues, to take all possible measures to promote and to maintain the maximum rice production and to make available to an organisation to be set up for the purpose the resulting surpluses in a manner to be indicated by that organisation and at prices to be fixed in agreement with it, having regard to the controlled prices of rice in other Asiatic producing areas.

17. To arrange the withdrawal and redemption in Siamese currency at par, within a time limit to be specified by the Allies, of all holdings in Siamese territory of baht currency issued by the Allied Command or by any of the Allies if it shall have been found necessary for the competent Allied military authority to use any such currency in Siam. If any such currency so used is not denominated in baht, to arrange upon request for its withdrawal and redemption in Siamese currency within a time limit to be specified by the Allies at such rates of exchange as may be determined by agreement between the Allies and the Siamese Government. All currency so withdrawn by the Siamese Government shall be handed over free of all cost to the Allied Command. Alternatively the Allied Command would accept payment in dollars or sterling at the recognised rate of exchange for currency not denominated in baht.

51. Handed by Sir George Sansom to Mr. Ballantine on September 10.