790B.00/3–1952: Telegram
No. 17
The Ambassador in India (Bowles) to the Department of State
3406. On Tuesday Mar 18 Bajpai reopened subj KMT troops North Burma and read from long reports which he had just recd from Ind Emb Rangoon and Bangkok. … KMT troops extremely well equipped and being constantly supplied from Thailand. With less assurance reports state several Amers said to be with troops but definitely states total of six or seven Amer natls now living Nhai Narong Hotel in Chiangmai, northern Thailand. Under orders from local police said to be exempt from registration.
Reports continue Thai Govt itself does not appear be committed but supplies to KMT escorted regularly by Thai local police under control Gen Phao.1 Report goes on to say Gen Phao enjoys power out of all proportion his position and since police in Thailand function more or less as independent organization, Gen strong enough challenge Army chief Gen Sirith2 and even PriMin Field Marshal Pibul himself.
Stated most important reason for police protection given by Gen Phao is his interest in opium traffic in and about area where KMT troops stationed. Stated that through his close ties with KMT Gen Phao able move opium out for sale and export through Thailand, and as long as this arrangement endures Phao not likely put any obstacle in way of supplies going through Thailand to KMT troops.
Reports conclude by saying there much talk this area of KMT excursion into Yunnan province and it assumed this is explanation for recent step-up in shipment of new supplies and equipment.
Bajpai stated with great emphasis he accepted entirely our assurances US Govt not directly involved any way and indeed anxious as Ind Govt find practical means getting KMT troops out of this explosive area.
But he pointed out Formosan Govt regardless our wishes seemed desirous stirring up trouble and thus dragging US into adventures on Chinese mainland which cld only result in all-out war with Chi and with strong possibility Sov involvement.
He stated there nothing inconsistent about his fears of what Chinese Natl Govt might be planning this area and his confidence our [Page 23] own integrity but he felt strongly unless we took firm and effective position with Formosan Govt situation may get beyond control.
I again told Bajpai we as anxious get KMT troops out as he, that we keenly aware dangers present situation particularly in that Chi Commies might look on situation as excuse for military action North Burma.
I asked him if he had any specific suggestions on course of action which wld ease situation. Bajpai stated he had no particular answer to KMT troop problem but it clear his mind they being supplied from Formosa and certainly we must have influence with Formosan Govt.
We wld again like emphasize extreme explosiveness this situation. There have been reports here informal, unofficial and perhaps unreliable from visitors to Hong Kong and Formosa who state very dangerous situation exists and that Formosan Govt wld not be above involving US in Chinese war through this or any other means. … high US mil officers in Formosa operating on their own initiative and in clear violation expressed US Govt policy.
Since these rumors persist we believe some definite steps shld be taken with Chi Nationalist Govt to relieve this problem and further to clarify our position. In spite Bajpai’s politeness it obvious he believes we carry at least indirect responsibility this situation.