892.61317/4–3046: Telegram

The Ambassador in the United Kingdom (Harriman) to the Secretary of State

secret
us urgent

4609. As result conversations with Butler and Kahn yesterday British have agreed to proceed with purchase Siamese rice on basis of premium and other proposals along lines outlined Dept’s 3506, April 25. Telegraphic instructions were sent last night to British Legation. Bangkok authorizing to proceed. Price specified is 12 pounds 14 shillings a ton ex mill excluding bags. Premiums to be paid up to end of May will be 3 pounds a ton and between end of May and June 15 1 pound 10 shillings a ton. British telegram states this offer is on condition Siamese Govt will not increase exchange rate of tical above 6 pence (40 to the pound) during currency of agreement. While British do not feel it appropriate to incorporate this point in exchange of notes British Legation instructed to seek satisfactory assurance from Siamese authorities to this effect.

British Minister instructed to take immediate action and British telegram expresses hope for news of signing of agreement by morning May 1.

Butler tells us price includes export duties but not bags and that this is in accordance with standard commercial practice in Siam. He confirms Dept’s understanding that proposed premiums will be applicable and rice delivered during period specified arid payable by whatever country purchases rice. Also confirms that same sterling and tical price (aside from premium) will apply to all present stocks and to new crop through approximately March 1, 1947.

Kahn approves these arrangements and feels agreement should be [Page 969] reached at once. The reaching of this agreement is believed to take care of points raised in Dept’s Niact 3599, April 29.54

Sent to Dept as 4609, repeated Bangkok as 5.

Harriman
  1. Not printed. The agreement superseding Article 14 of the agreement of January 1, 1946, was effected by an exchange of notes on May 1, 1946, by the British Minister in Siam and the Siamese Minister for Foreign Affairs; for text, see United Nations Treaty Series, vol. 99, p. 169. A further exchange of notes on May 1 dealt with the question of premium payments to be paid through June 15, precisely along the lines set forth in telegram 4609 from London. The texts of the two exchanges of notes were transmitted to the Department in despatch 54, August 13, 1946, from Bangkok, not printed.