Foreign Relations of the United States, 1951, Asia and the Pacific, Volume VI, Part 2

892.00–R/5–1951

Memorandum by Messrs. Leonard S. Tyson and Robert A. Burman, Office of Philippine and Southeast Asian Affairs¹

confidential

[Washington,] May 22, 1951.

Subject: ECA 1951 Program for Thailand: Ambassador Stanton’s telegram to the Secretary

1. Ambassador Stanton in a telegram to the Secretary (Colombo’s 558 of May 19),² has presented a strong case, on political, psychological and military grounds, for the restoration of the “Highway Project” in the 1951 ECA program for Thailand. He urges that no cut be made below the original $9.2 million program which has been “worked out” with the Thai Government. The Ambassador feels that since an important basic principle is involved, that the Secretary might be willing, if necessary, to discuss this problem with the President.

2. Mr. Landon and Mr. Tyson transmitted a copy of the Ambassador’s telegram to Mr. Griffin of ECA. According to Mr. Lane³ (the ECA Thai desk officer), the ECA and the Department agreed on last Saturday⁴ to appeal to the President the cuts made by the Bureau of the Budget in the ECA 1951 programs. Accordingly, Mr. Griffin had prepared a letter from Mr. Foster⁵ to the President requesting the restoration of the funds. Upon receipt of Mr. Stanton’s telegram, however, Mr. Griffin, reportedly, revised the letter to include some of the Ambassador’s arguments.

3. The Budget Bureau markings have reduced the 1951 program for Thailand from around $9.2 million to $7.55 million. The amount of the cut is approximately the full amount of the “Highway Project”, to which the Ambassador refers. Presumably, ECA would still be able to finance the Highway Project even with the lesser amount of funds but this would require the deletion of other programs which, presumably, have also been agreed to with the Thai Government.

Action Requested:

1. Is the foregoing account of the present status of the ECA 1951 Thai program in accordance with your understanding?

2. Pursuant to the ECA/Department meeting of last Saturday, and in the light of the Ambassador’s telegram, is any further action called for by the Department?

3. Subject to your modifications of the foregoing, a telegram will be prepared setting forth the present status of the Thai program to be sent to both Embassy Bangkok and to the post which is next on Mr. Stanton’s itinerary.⁶

1. Addressed to the Director of the Office of Philippine and Southeast Asian Affairs (Lacy) and to Mr. William M. Gibson, Office of Philippine and Southeast Asian Affairs.
2. Not printed.
3. Clayton Lane, Acting Chief, Thailand Branch, Economic Cooperation Administration.
4. May 19.
5. William C. Foster, Administrator, Economic Cooperation Administration.
6. Not printed; the cable under reference was telegram 1850 to Bangkok, May 29. The Embassy was informed that the Department and the Economic Cooperation Administration were making another appeal to the Bureau of the Budget to restore the cuts made in ECA’s programs. (892.00–R/5–1951)