PSA Files: Lot 58 D 258, Box 13693

Memorandum by the Officer in Charge, Thai, Malayan and Indo-chinese Affairs ( Landon ) to the Deputy Assistant Secretary of State for Far Eastern Affairs ( Merchant )

Subject: Foreign Military and Economic Assistance Programs for Thailand.

At the suggestion of Mr. Parelman,1 I am forwarding to you some comments which I have prepared on aid programs for Thailand and the desirability for their continuance in the light of their past accomplishments.

[Enclosure]

Analysis and Appreciation of Foreign Military and Economic Assistance Programs for Thailand

A. The Present Military Program.

On October 17, 1950, a military assistance agreement was signed between Thailand and the United States. Within three months from that date equipment began to be delivered to the Army, Navy and Air Forces. The program for 1950 and ’51 was carefully calculated to achieve certain primary objectives which were: (1) to encourage Thailand to continue on its present political course of alignment with the free world and to remain a stabilizing force in Southeast Asia; (2) to assist the Thai armed forces in improving internal security and, by increased defensive strength, deterring external aggression; (3) to bolster internal political stability and help check Communism by strengthening the Thai Government.

To these ends the actual materiel allocated to the Army, Navy and Air Forces were so balanced as to avoid disturbing the political balances which rested upon the various Armed Services. It was fully realized that the stability of the government depended upon the preponderant forces of the Army and Police as over against the Navy. The police are mentioned in this connection not because they received military aid directly but because the army released to the police their more obsolete equipment as they were able to obtain modern arms. During the course of furnishing equipment, various substantive changes have been made in the over-all listings of equipment. These modifications as indicated in the section of this paper provided by the military establishment have not had an adverse effect upon the success of the military aid program in Thailand because the Thai [Page 1624] Armed Forces have been receiving just about the maximum amounts that they have been able to absorb up to date.

On the week end of June 29, 30 and July 1, the Navy engaged in military action with political significance against the regularly constituted government and arrested the Prime Minister, holding him for a time on board the flag ship of the Thai Navy. The resulting action in which the Army and Police subdued the Navy in less than two days illustrated the wisdom of the U.S. Government’s policy in providing military aid on a carefully balanced basis. As it seems apparent that considerable reorganization of the Navy would be brought about, it was decided that shipments not already on the water for the Navy should be suspended, subject to further recommendations from the Embassy and MAAG.

Request was made for the views of the Embassy, Military Attachés and MAAG as to the future of MDAP for Thailand. The report received coincides with the thinking in the Department that the first objective of MDAP, i.e., the alignment of Thailand with the U.S. and UN against Communism has been remarkably successful. In anticipation of MDAP the Thai Government began to take action in 1950 against Communism. Thus, on February 28, 1950 it officially recognized the Governments of Laos, Cambodia and Vietnam, thus aligning Thailand against the forces of Communism in those countries. Thailand also resolved not to recognize the Chinese Communist Government and prepared to resist its entry into the United Nations. A final and decisive move was made on July 21, 1950 when the Thai Government offered ground, air and sea forces to the United Nations Forces in Korea. It made a conclusive step when it resolved in conjunction with the United States Government at the United Nations to declare Communist China an aggressor in Korea. Thailand furthermore has consistently supported the United States policies in the various organs of the United Nations. The foregoing recital indicates also that the second objective has also been reasonably attained, i.e., for Thailand to resist external aggression. By its acts of recognizing the free governments in Indochina, it opposed itself to the actions of the Viet Minh who have been operating along the Thailand–Indochina border. In opposing the Chinese Communist Government, Thailand has given an unmistakable evidence of its intentions toward any Chinese aggression.

The third objective of MDAP was to help in the stabilization of the Thai Government. Notwithstanding certain changes in the leadership and alignment of forces within the government, as a result of the attempted coup d’état of June 29, the attitudes of the government remain essentially unchanged. The Prime Minister and the Foreign Minister have given repeated assurances that their policies remain [Page 1625] unchanged, and government leaders have uniformly indicated their desire for continued MDAP aid.

The abandonment or even material modification of military aid contemplated for Thailand in the years 1952–5 at this time, in the view of the Embassy, the Military Attachés, the MAAG, and the Department, might very well defeat all of our efforts thus far. It might conceivably cause the Government to reconsider the very extended position it has taken against Communism and might lead the government to consider accommodating itself to the forces of Communism. It should also be recognized that the cost of the program to the United States in relation to its position in Asia in general is minute. The program to which we are committed and which is anticipated should be continued unchanged except possibly as regards materiel for the Navy which awaits further recommendation and consideration by the Embassy and MAAG.

B. The Present ECA Program.

On September 19, 1950 an economic assistance agreement was signed between Thailand and the United States. The program was conceived in order to improve the economic position of Thailand as a nation and of the Thai people as individuals so that they might be economically strong against any possible temptations of Communism. After careful study by trained personnel in Thailand, it was concluded that U.S. aid should be along several principal lines: (1) port development; (2) improvement of railroad communications; (3) irrigation; and (4) public health.

The ECA program is just moving out of the planning stage and is beginning to have a substantive effect. Until July 1951 almost all ECA personnel in Thailand were administrative and the only evidence of the proposed program was the use of DDT in certain restricted areas of the country for the control of malaria. During the last couple of months a large number of technicians have been proceeding to Thailand, especially in the field of public health and agriculture. The personnel chosen have been of the highest order and the technical results should be substantial in the coming year. As for the port development, the ECA has granted a dredge to participate in the dredging of the harbor. Up to date the principal effect of the ECA program has been psychological in impressing the Thai with the value of American friendship.

The program was cut quantitatively from the original planned amount of about $12 million to about $7 million. It is expected that the remainder may be obtained by loan from the IBRD or Export–Import Bank. In view of the fact that the program has already been cut substantially, it seems imperative in order to keep good faith with the Thai people and government that the balance of the program be continued unimpaired.

  1. Samuel T. Parelman, Special Assistant for Regional Programs to the Assistant Secretary of State for Far Eastern Affairs.