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

790B.5 MSP/12 2354: Telegram

No. 177
The Chargé in Burma (Acly) to the Department of State

secret

Rangoon, December 23, 1954—5 p.m.

495. Re reimbursable and grant military aid proposal OCB file 41.¹

Believe assurances² as cleared State best presented Kyaw Nyein as composite document including both old and new commitments. Believe should also include 511 (b) assurances and avoid any connection with former aid program for Mutual Security Act.

Expect opposition on point 6³ regarding publicity which Burmese will interpret as effort induce public deviation from neutrality policy. Believe we should concentrate on basic purpose increase Burmese military strength and minimize secondary considerations that would jeopardize this objective.

Rock on which entire project could easily founder is requirement American advisers. Regardless explanation we may give Burmese will interpret this as effort infiltrate military establishment and thereby discredit our real objective. Army Attaché believes GUB will desire advisers but only on direct contract basis. Believes unwise suggest might be assigned attaché section Embassy. Financial consideration not important.

Hope after question available funds settled we can be informed amount or at least ratio grant aid to purchases. Kyaw Nyein would be unable discuss subject with colleagues without giving concrete idea scope program in terms cost to GUB and what they get in return.

Present time especially unfortunate to raise the matter in view public assurances given CPR by Nu during recent visit that Burma will not entertain thought accepting aid or pursuing any course action in relation US which might cause concern to CPR. Implications military aid agreement with US whatever terms would raise doubts U Nu’s good faith in making these assurances and render acceptance politically dangerous to GUB. Therefore, propose latter be held in abeyance until China visit less fresh in public mind.

Acly

1. Document 174.
2. A draft note specifying the assurances which the United States would require of Burma in order to provide reimbursable military assistance was enclosed, a draft letter from Sebald to Kyaw Nyein, undated and never sent, and a letter from Blancke to Acly, Nov. 30. (790B.5 MSP/11–3054)
3. Point 6 provided that each government would take “appropriate steps, consistent with security, to inform its public of operations” under the proposed agreement.