39. Telegram From the Department of State to the Embassy in Burma1
Washington, May 12,
1956—2:08 p.m.
1138. Your 1246.2 Department officials May 11 discussed with Ambassador WinGUB rejection US loan offers in hope he can elaborate US position to Prime Minister upon return May 20. Follows summary conversation:
- 1.
- Department reviewed US efforts meet GUB requests for assistance and informed Ambassador Win of new loan offer and rejection. Ambassador obviously uninformed by GUB re offer and rejection loans.
- 2.
- Explained reason he not informed by Department was recent-ness of offer and desire obtain initial Rangoon reaction.
- 3.
- Rejection causes us puzzlement because we unaware any political strings involved as far as Burma concerned.
- 4.
- In endeavor clarify possible misunderstanding US Government now making complete re-examination of the requirements for Burma’s eligibility for assistance.
- 5.
- Had hoped have message this subject Ambassador could hand carry to Burma but re-examination not yet completed and expect cable results to our Embassy before end next week.
- 6.
- Asked Ambassador explain to Prime Minister Washington atmosphere of good will and desire be of help on our part.
- 7.
- U Win asked whether the request for loans had U Nu and Cabinet approval or Kyaw Nyein acting on own. Department replied we assumed had GUB approval since requests for loans longstanding and discussed at various levels GUB, including U Nu.
- 8.
- Ambassador asked re effect Battle Act if Burma increased rubber shipments and supplied other strategic items to CPR. Department replied Burma’s pattern of trade one of factors being reviewed but our belief it most unlikely find Burma in violation. Presidential determination could be made in cases where violation presumed but we confident necessity will not arise. Rationale aid program to Ceylon briefly discussed.
- 9.
- Ambassador asked what conditions involved in loan agreements. Department replied only conditions would be those standard in financial agreements.
Comment: Department and interested agencies reviewing Burma problem in hope establish Burma’s eligibility loans without fear [Page 64] Battle Act violation. Purpose interview was furnish U Win with background and clarify US position.
Dulles