Agreement with Siam regarding the sale of American surplus property

[The Department of State informed the Legation at Bangkok, in telegram 216, April 1, of the willingness of the United States Government to enter a contract with the Siamese Government whereby the latter would purchase American surplus property in the amount of $10,000,000 with additional purchases if needed to a final total of $20,000,000. Payment would be made in accordance with a separate deferred dollar credit agreement to be negotiated with the Siamese Government to permit possible barter of surplus property for real estate or other tangible or intangible property (892.24/3–2346). The Legation at Bangkok notified the Siamese Foreign Office to this effect in note No. 31 of April 5. A formal contract was executed by [Page 1109]American and Siamese officials at Manila on May 16. The contract provided that if a deferred credit agreement were not consummated by January 1, 1947, the purchase price would be paid in twenty equal annual installments of $500,000, with interest at the rate of 2⅜%. No evidence has been found that a deferred credit agreement was negotiated.]