892.2553/3–151
Memorandum of Conversation, by the Ambassador in Thailand (Stanton)
| Participants: | H. E. Field Marshal P. Pibulsonggram, Prime Minister of Thailand |
| Edwin F. Stanton |
Subject: Petroleum Stocks for Thailand.
During the course of a call on the Prime Minister on February 27, I discussed with him at some length the present problem, on the one hand of insuring adequate flow of petroleum products to Thailand needed for commercial and Government purposes, and at the same time preventing such supplies from falling into the hands of communist agents. I told the Prime Minister thus far no special quota had been imposed on exports of petroleum products to Thailand, and that it was our desire to insure sufficient stocks for all normal needs plus, perhaps, a reserve of three months supply for the Armed Forces, but that the possibility of such stocks falling into the hands of the Communists was a matter of real concern to the United States Government.
I emphasized that we needed full cooperation of the Thai Government and that indeed it was to the Government’s own advantage to give us every assistance in this matter, and asked him to instruct the appropriate authorities of the Government to prepare for us a detailed breakdown of requirements of each Ministry and each of the Armed Services for all types of petroleum products for the calendar year. I pointed out that such statistics would enable us much more intelligently to meet the Government’s needs. I further told the Prime Minister that in this matter we and the British Embassy were working [Page 1598] very closely with the three oil companies, namely, Standard Vacuum, Shell and Caltex. The Prime Minister asked whether similar statistics for commercial consumption were needed. I said they would be helpful if available, but that I believed the three oil companies had a very good idea of the extent of normal commercial requirements.
With reference to the problem of petroleum products falling into the hands of the Communists, I said to the Prime Minister that, speaking very frankly, the Embassy and the Department of State received frequent reports indicating that agencies of the Thai Government were ordering gasoline and other petroleum products in the name of the Government, either changing the name of the consignee after the shipment left the United States or reselling the shipment to some commercial concern such as the Oriental Corporation, which in turn sold the shipment to the Chinese Communists. The Prime Minister was visibly concerned over my disclosure and promised to have an immediate and thorough investigation made.