Office of the Historian

890B.00 TA/5–753: Telegram

No. 72
The Secretary of State to the Embassy in Burma

confidential
Washington, May 7, 1953—7:31 p.m.

1733. From Robertson1 and Andrews.2 Department has reviewed Burma program in full and decided on general principles and procedures for terminating program. These decisions reached after carefully weighing effect in Burma as well as domestic reactions US if positive steps to close out program not taken. Recognizing curtailment involved may be more substantial than anticipated, Department considers our long-range interest best served by accepting GOB request for withdrawal at face value and approaching winding-up problems in most practical manner and on friendliest basis.

A. Principles:

1.
No new commitments will be made with GOB for personnel and supplies retroactive to March 17. No new activities under project agreements are to be started, no new contracts for services are to be signed except as indicated below. Only minimum new equipment will be ordered from suppliers and minimum new personnel furnished, for activities as described following paragraph.
2.
Action commenced on FY 51/53 projects prior March 17, including dollar support of GOB contracts with private organizations, will be reviewed project by project by TCA/W to determine projects to be continued. US Government prepared complete such orders, ship such equipment and retain or assign such TA’s for instructing in installation and utilization equipment as necessary to avoid undue waste. Such services and goods will be kept minimum.
3.
US funds will not be available to finance extension any existing GOB contracts with private organizations.
4.
Trainees now in US will be permitted complete training. Planned FY 53 trainee program will not be implemented.
5.
GOB should be requested provide kyats due against saleable commodities under FY 51/52 program plus any additional amount of local currency required to support those 51/52/53 activities which have been or are to be completed. GOB will not be expected provide full amount kyats specified in FY 53 program agreement.
6.
Of TCA/B staff only minimum persons required to supervise constructive salvage job to remain. Departure by transfer or recall of personnel not required under this policy should commence after details wind-up activities clarified.
7.
Foregoing policy does not permit reprogramming available funds during March-June interim.

Delivery goods and services under foregoing principles deemed legally feasible after June 30 by receipt GOB note (your 2091)3 embodying text draft two (your 2050).4

B. Procedures:

1.
Department will shortly forward substance of note to be delivered to Foreign Office setting forth policy this Government in terminating aid.5
2.
In separate messages TCA/W will inform TCA/B of action to be taken re individual projects and contracts. Those activities US Government prepared to continue will then be submitted by TCA/B to BEAC for written indication of disposition GOB desires each case.

Above principles and procedures will cut off nearly all planned FY 53 activities and portion of FY 51/52 funds now covered by procurement authorizations.

Dulles
  1. Walter S. Robertson succeeded Allison as Assistant Secretary of State for Far Eastern Affairs.↩
  2. Stanley Andrews, Administrator of the Technical Cooperation Administration.↩
  3. Dated May 1; it reported the receipt of a note stating that the Burmese Government did not wish any new aid program initiated after June 30, but would welcome any supplies and services obligated on or before that date. (890B.00 TA/5–153)↩
  4. Not printed.↩
  5. The substance of the note was incorporated in telegram 1772 to Rangoon, May 15. (890B.00 TA/5–153)↩