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

892.00–FA/11–2351: Airgram

The Acting Secretary of State to the Embassy in Thailand

confidential

Washington , November 23, 1951.

A–184. Interested agencies concur in handling new criteria for eligibility for United States aid and other provisions of Mutual Security Act¹ through exchange of notes. Draft, which comes at end of this airgram, was prepared for submission to the Government of Thailand on the basis appropriate discussions between officials of the Embassy and the Thai Government.

Prompt action this note urgent due provisions MSA (Section 531) that no military economic or technical assistance may be furnished any country which shall not have agreed to Section 511 assurances within 90 days, i.e. by January 8, 1952. Failure of Thailand to provide necessary assurances will jeopardize continuation of current assistance programs under Economic Cooperation Agreement and agreement on military assistance.

It is clear from the legislative history of Section 511 and from the use of the words “has agreed” in that section that the requirement laid down therein can be fulfilled without receiving a fresh series of commitments if it can be found that in existing agreements Thailand has already accepted the commitments contained in the section. However, it has been concluded that the Executive Branch will respond to the Congressionally imposed requirement in the most direct fashion by requesting all countries receiving aid to subscribe to those undertakings in the words of the section. To try to spell out of the United Nations Charter, the North Atlantic Treaty, and other documents the commitments laid down in section 511 would involve a semantic exercise of some proportions, at the end of which there would be danger that the Congress would remain unpersuaded as well as somewhat annoyed. For it is not at all apparent to those who inserted this section into the statute why any nation should have any difficulty subscribing to these commitments. It is felt that any nation which received aid from the United States ought to be willing, without hesitation, to embrace these general political commitments which seem, at least on their face, to involve nothing more than an agreement to do what in good conscience any recipient of aid ought to agree to.

In order to provide for the continuation of the present economic and military assistance programs for Thailand after January 8, 1952 paragraph one of the draft note below has been prepared on the basis of the language of section 511(a). Most serious difficulty foreseen by Department to Thailand’s acceptance of paragraph one is to point three. With particular reference to this point, the Thai Government may feel that it has not assumed any “military obligations” under other agreements or treaties “to which the United States is a party”. Mere membership in the United Nations is not considered the assumption of a military obligation. On the other hand, membership in the Inter-American Treaty for Reciprocal Assistance, the North Atlantic Treaty, and bilateral defense treaties with the United States are deemed to involve “military obligations” as that phrase is used in this section. Therefore, while point three is desirable in the interest of removing all possible basis for questioning Thailand’s compliance with Section 511, it is not directly applicable to Thailand in the absence of “military obligations” in the sense in which these words are used. If in your judgment Thai officials likely to find the language of point three objectionable and presentation would result in unnecessarily irritating the Thai Government, this point may be dropped from draft note.

Paragraph No. 2 of draft note is based on section 524 of MSA which requires the President to make appropriate arrangements with recipient countries for the return of equipment or material no longer needed for the purposes for which originally made available. Such procedures have already been proposed to a number of countries. It is considered desirable to insert this general undertaking in all the agreements with countries receiving assistance under the Mutual Defense Assistance Act.

Paragraph No. 3 of the draft note is based upon section 515 of MSA and follows language of that section. You may point out this section was enacted out of concern by Congress for situation in which funds intended for Greece were attached in Belgium during past year. It is recognized that in certain situations attachments are possible on United States foreign aid funds wherever assistance program operates. Problem becomes generally significant only in those cases where advances of funds are made prior to actual delivery of goods and services. Provision would have no effect where the country obtains the commodity or service involved with its own resources and United States reimburses such country on receipt of documentation showing that commodity or service has actually been purchased and delivered or where the United States makes available commodities or services and payments are made directly by the United States to suppliers. In those cases where the attachment provision will require action to be taken, the Thai Government can be assured that the United States will cooperate in helping to work out arrangements for compliance that will not be unduly burdensome.

Inclusion of paragraph No. 4 is necessary since section 502 of MSA abolishes ECA and transfers its powers and responsibilities to the Mutual Security Agency.

Final paragraph. Local conditions may require some modifications in the form of the closing paragraph. These will be considered by Department so long as a legally binding agreement is achieved.

In view of the January 8 deadline, urgency prompt action on conversations and exchange of notes again stressed. Progress on negotiations should be reported.

Text of draft note follows:

“Excellency: I have the honor to refer to the conversations which have recently taken place between representatives of our Governments relating to the effect of the enactment by the Congress of the Mutual Security Act of 1951 (P.L. 165, 82nd Congress) upon furnishing assistance under the Economic and Technical Cooperation Agreement signed on September 19, 1950, and the agreement on military assistance signed October 17, 1950, between the Government of the United States and the Government of Thailand. I also have the honor to confirm the understandings reached as a result of these conversations, as follows:

1. The Government of Thailand hereby confirms that it has agreed to

(1) join in promoting international understanding and good will, and maintaining world peace;

(2) take such action as may be mutually agreed upon to eliminate causes of international tension;

(3) fulfill the military obligations which it has assumed under multilateral or bilateral agreements or treaties to which the United States is a party;

(4) make, consistent with its political and economic stability, the full contribution permitted by its manpower, resources, facilities, and general economic condition to the development and maintenance of its own defensive strength and the defensive strength of the free world;

(5) take all reasonable measures which may be needed to develop its defense capacities; and

(6) take appropriate steps to insure the effective utilization of the economic and military assistance provided by the United States.

2. The two Governments will establish procedures under which equipment and materials furnished by the Government of the United States under the Mutual Defense Assistance Act of 1949, as amended, or by either Government under the terms of the October 17, 1950 Agreement, other than equipment or materials furnished under terms requiring reimbursement, and no longer required for the purposes for which originally made available will be offered for return to the Government which furnished such assistance for appropriate disposition.

3. The two Governments will establish procedures whereby the Government of Thailand will so deposit, segregate, or assure title to all funds allocated to or derived from any program of assistance undertaken by the Government of the United States so that such funds shall not be subject to garnishment, attachment, seizure or other legal process by any person, firm, agency, corporation, organization or Government, when in the opinion of the Government of the United States any such legal process would interfere with the attainment of the objectives of the said program of assistance.

4. The reference in Article 1 of the Economic and Technical Cooperation Agreement to the Economic Cooperation Administration shall refer also to the Mutual Security Agency.

Upon receipt of a Note from your Government indicating that the foregoing provisions are acceptable to the Government of Thailand, the Government of the United States of America will consider that this Note and your reply thereto constitute an agreement between the two Governments on this subject which shall enter into force on the date of your Note in reply.”

Foregoing note, if acceptable, would cover all changes presently necessitated by the Mutual Security Act. While Act also extended use guaranties (Section 520) this will be subject separate approach.

Webb

1. Approved October 10; 65 Stat. 373.