890.00/10–1351: Telegram
The Chargé in Thailand (Turner) to the Secretary of State
880. Re Deptel 822, Oct 9.1 Fol comments offered re UK suggestion that US approach TG to encourage joining Colombo plan, Various aid programs, developmental or otherwise, comprising ECA, World Bank, UN technical assistance, MDAP, Fulbright together with expense Thai expeditionary force now taxing resources of country. Total extraordinary expenditures of TG in local currency 1951 for programs noted above estimated at over $32 million US out of total budget of $190 million (see Embdes 782, May 11)1 1952 budget already before Parliament embodies approx US $30 million deficit to be covered by surplus and loans. TG for some time seriously concerned large local expenditures necessitated by present aid programs. Additional aid schemes cld only be financed at price of inflationary measures and in view our own concern this problem Thai wld find it very difficult understand any support by US of Colombo plan.
Current aid programs already hampered in all fields by paucity trained and capable Thai personnel essential not only to present but future success any such scheme. Additional aid program here cld only result in competition for limited number Thai technicians, especially since Colombo emphasis appears to be on same type projects now going forward.
Effect on many Thai trade policies may be great if through Colombo plan UK insists on certain types contribution in return. Example: British might well use plan to force Thai deliver greater percentage total Thai rice production to commonwealth areas to detriment Thai Japanese trade agreements and other non Colombo purchasers, e.g. Philippines. Further support by US wld be in direct opposition to known Thai attitudes and conflict with their desire reduce British economic influence (Embdes 651, Feb 20).1
Conceivable UK might use Colombo plan here as political lever. British jealous growing US influence in Thailand and cld scarcely forego opportunity afforded recoup former position. If plan so used it wld serve to emphasize UK–US policy differences on many points, e.g. extent of support of Phibun govt, recognition Commie China. US advocacy Thai membership Colombo plan wld foster undesirable impression that US is collaborating with “colonialist” Britain in Asian objectives.
For above reasons Emb strongly recommends no approach be made to TG by US in support Colombo plan.