792.5 MSP/5–854
No. 416
The Deputy Secretary of Defense
(Anderson) to the Deputy Under
Secretary of State (Murphy)
My Dear Mr. Murphy: Reference is made to your letter dated April 13, 19541 which enclosed a memorandum dated March 12, 1954, subject: Additional Aid to Thailand, from Chief MAAG Thailand to Ambassador Donovan.2
In considering additional military assistance to Thailand, the problem of availability of funds must be faced. The losses that the FY 1950–54 MDA Program has suffered to non-MDA Programs (over half a billion dollars), the diversion from other countries to increased support of the effort in Indochina, together with the limited funds being requested for FY 1955, almost preclude any large scale buildup in Thailand. Any increase of funds for Thailand can only be at the expense of other country programs.
It is pointed out that the economy of Thailand, while the best of all countries of Southeast Asia, is such that it cannot support a large defense effort from its own resources. Any additional buildup will inevitably create a demand for continuing budgetary support. It would seem that at present the emphasis should be on increasing the quality rather than the quantity of the Thai armed forces. However, the realization of the proposal by the United States to form a collective security alliance in Southeast Asia and the Pacific will, of course, affect Department of Defense views.
This problem of additional assistance to Thailand is being referred this date to the Joint Chiefs of Staff for their review and military advice to the Secretary of Defense. You will be informed of the position of the Department of Defense upon receipt and review of their military advice.
Sincerely yours,