892.61317/10–2546
Memorandum of Conversation, by the Chief of the Division of Southeast Asian Affairs (Moffat)
Sir Harold62 called by appointment at his request to set forth his views on Siamese rice and inquire as to the views of the Department.…
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Sir Harold stressed particularly the need for continuing the Combined Rice Commission until September 1947 expressing the view that the possibility that the Commission would go out of existence March 1 [, 1947] and so end price controls was an important factor in causing hoarding. I was quite non-committal on the subject but pointed out that the price control continued until May 1, 1947 under British-Siamese notes exchanged May 1, 1946 and remarked that we thought the penalty provisions should be eliminated. I also commented on the impossibility of fulfillment of the 1,200,000 ton commitment because the coming crop would produce no surplus and I called his attention also to the official Siamese request for our good offices in securing a reduction of 200,000 tons from the required 1,200,000 tons on account of the loss of Battambang.63 I concurred personally, however, with Sir Harold that the Siamese argument in this respect was probably not factually sound. Sir Harold commented that the May 1 notes had never from his point of view been intended as a means of acquiring free rice but as an incentive to the Siamese to export an amount which it was then agreed they were able to export. He concurred in my view that this was now impossible and stated that he thought the May 1 notes should be revised on the basis of existing potentialities and the 1,200,000 reduced to 600,000 to be exported between now and next September 1.
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[In a memorandum of November 1, 1946, the Chief of the Division of Southeast Asian Affairs (Moffat) indicated that agreement was reached with Sir Harold Sanderson on a draft revision in the Siamese rice program (892.61317/11–146). The substance of the agreement was sent to Mr. Stanton in telegram 886, November 14, 4 p.m., with the following directive: “You and Thompson, when submitting proposed program to Siamese Govt, in such form as you may jointly decide most suitable, should, while expressing gratification recent Govt [Page 976] measures, respectively express dissatisfaction of US and UK at performance Siamese to date in meeting other areas’ critical rice requirements, (also, in case UK at failure Siam meet its obligations under May 1st notes); emphasize that proposed program designed meet many causes to which rice program failure was attributed, but there are other causes solely within control Siamese Govt; and insist Siamese Govt assume whole responsibility for and hereafter meet internal problems squarely …” (892.61317/11–1446)
Telegram 1413, December 22, 4 p.m., from Bangkok, reported that the new proposals were submitted to the Siamese Government, and on December 21 the Siamese Cabinet agreed to them in principle (892.61317/12–2246).]
[On December 7, 1946, the United States concluded an agreement with the United Kingdom, Australia, and Siam to expedite the flow of tin from Siam to world markets and to provide for the settlement of obligations of the Siamese Government to British, Australian, and other Commonwealth owners of mines in Siam arising from the agreement of January 1, 1946, between the United Kingdom, India, and Siam, and the agreement of April 3, 1946, between Australia and Siam. The agreement concluded on December 7 comprised a Memorandum of Understanding and an exchange of notes by the four Governments. Copies of the Memorandum of Understanding, Mr. Stanton’s note No. 106 to the Siamese Minister for Foreign Affairs, note No. 10105/2489 in reply, and the British Minister’s note to the Siamese Minister for Foreign Affairs, all dated December 7, 1946, were transmitted to the Department by the Minister in Siam in despatch 205, December 16 (892.6354/12–1646). A summary of the agreement was given in a statement released by the Department on December 10, Department of State Bulletin, December 29, 1946, page 1186. An agreement for the continuation of certain provisions of the Memorandum of Understanding with regard to tin was signed by the four Governments on December 30, 1946. A copy of this agreement was transmitted to the Department in despatch 231, January 6, 1947, from Bangkok (892.6354/1–647).]