Foreign Relations of the United States, 1952–1954, East Asia and the Pacific, Volume XII, Part 2

890B.2317/10–2153: Telegram

No. 119
The Secretary of State to the Embassy in Burma¹

top secret

Washington, October 30, 1953—7:04 p.m.

355. Your 389 rptd London 13.² Interests US would suffer in long run if other governments gain impression they could utilize Soviet or Chinese Communist offers of this kind as opportunity secure special advantages from US. Dept hopes [name deleted] can successfully put forward reasons unrelated to proposals involving expenditures by US in opposing acceptance of Communist offers.

Problem of Burma’s rice surplus has two aspects: (1) Urgency of disposing of present surplus; (2) Desire for assurances future exportable surplus can be sold at reasonable prices.

Dept hopes that long-range problem can be met in large part by Jap purchases (Deptel 340).³ Re present surplus Dept anxious assist if possible through diplomatic channels and does not believe difficulties so critical as to oblige Burma conclude with Communist nations long-term contractual engagements which have strings attached such as obligation furnish strategic materials.

Dept fears such long-term commitments might endanger Burma’s freedom of action and draw Burma into Communist orbit.

Dept believes that by first consulting with its traditional buyers Burma would not only protect its interest in preserving traditional markets on which its economic well being depends but would have logical reason for avoiding irrevocable decision which might result in making Burma politically dependent on Communist China.

Your info only, Dept is reviewing possibilities facilitating purchases Burma rice surplus by Japan and India and usefulness consulting UK Government on (a) increased UK purchases for Malaya and Hong Kong (b) diplomatic approaches by UK to Commonwealth countries concurrent with US diplomatic approaches to other countries (c) facilitating acquisition sterling by Japan to cover purchases from Burma. Various proposals involve policy and legislative considerations which prevent immediate accommodation Kyaw Nyein’s request beyond approach to Japanese already initiated. Dept will continue efforts achieve early results on KMT troops and reimbursable aid.

Dulles

1. Repeated to London.
2. Dated Oct. 24; it reported a conversation concerning the possibility that Japan might purchase some of Burma’s rice surplus. (890B.2317/10–2453)
3. Telegram 340 to Rangoon, sent to Tokyo as 1007, Oct. 28, instructed the Embassy in Tokyo to encourage a proposed Japanese purchase of Burmese rice. (894.2317/102353)