792.5/10–1554: Telegram
No. 435
The Chargé in Thailand (Parsons) to the Department of State
811. Joint Embassy-FOA message. Reference Deptel 927, October 13.1 Following discussion mentioned Embtel 549 of September 10,2 Thai Government made official request for additional assistance for both military and economic purposes. STEM officials with assistance Embassy officer and, where appropriate, JUSMAG chief have listened to justification for request from several Ministries. Information on Thai requests being forwarded separate State cable.3
Embassy and STEM firmly convinced necessity increase amount economic assistance to Thailand. Thai, in face falling government revenues, under obligation increase military expenditures. At same time necessary Thai continue nonmilitary expenditures at high level to prevent development unrest among population which would increase receptivity to Communist propaganda.
In deciding nature and amount additional economic assistance both Embassy and STEM convinced desirable whenever possible finance nonrepetitive items (except possibly direct forces support which should have agreed cut-off date) to preclude possibility building permanent budget support into Thai thinking. Also wherever possible such items should be of nature capital investment to demonstrate both Thai and Communists that US Government convinced that Thailand will be independent for a sufficient period of time to permit full utilization of such long-term type investments.
- Telegram 927 stated that the subject of military budget support was under consideration as a matter of principle in view of requests for such aid from various nations and requested information and recommendations concerning a possible Thai request for such support. (792.5/9–1054)↩
- Telegram 549 reported an informal Thai request for economic assistance to cover a deficit in the Thai military budget. (792.5/9–1054)↩
- No such cable has been found in Department of State files, but see Document 437.↩