40. Telegram From the Embassy in Burma to the Department of State1
1324. Barrington, Permanent Secretary Foreign Office, has given me copy letter addressed by Prime Minister to President Eisenhower dated May 22,2 which he said had been sent Burmese Embassy Washington with instructions deliver soonest.
High points of letter (of which full text by pouch) as follows:
Two keystones of over-all policy of AFPFL, which recently scored clearcut victory at polls, are: determination strengthen economic social fabric of country rapidly but only through democratic methods; and equal determination remain uncommitted in cold war. To carry out even curtailed development program, need American assistance. Two obstacles to revival American aid, from Burma viewpoint: first, Burma’s strong disinclination take anything free from another country, however friendly, and consequent need to make at least token payment in rice for any grant assistance received; and secondly, anxiety not to compromise Burma’s neutrality. Because of latter, even tacit acceptance Battle Act restraints would place GUB untenable position. Tragic feature of Battle Act difficulty is that Burma’s exports falling within purview act almost negligible and even such exports would tend flow toward cash markets. If US could waive requirements of Battle Act understanding as prerequisite to revival economic cooperation program, Burma most happy to accept assistance. If US embarked on program and later felt obliged by action Burma’s part to reconsider and possibly terminate it, Burma would understand and continue friendly to US. Similarly, Burma would not wish embark on aid program unless it felt that US recognized Burma’s need to retain in principle its freedom of action and [Page 65] that US would not regard as breach of faith possible Burmese actions which might require US to reconsider continuation aid.
Embassy comments:
Reiteration Burma’s unwillingness accept grant aid without at least token compensation in rice may foreshadow request to increase US technical assistance in rice-for-technicians agreement. Much more importantly, re Battle Act, Prime Minister’s letter seems indicate clearly Burma would accept renewed offer US loan, as recommended Embtel 1246,3 which would leave both countries their freedom of action. If US can renew offer these circumstances, way seems open to establish new aid program which could go far toward keeping Burma from being drawn into Communist orbit.
- Source: Department of State, Central Files, 411.90B41/5–2956. Confidential. Received on June 3; a note on the source text states it was delayed in transmission.↩
- The letter, signed “Maung Nu,” is filed with a June 19 memorandum from Howe to Ann Whitman. (Eisenhower Library, Whitman File, International Series) A copy was sent to the Department as an enclosure to despatch 520 from Rangoon, May 28. (Department of State, Central Files, 411.90B41/5–2856)↩
- Document 38.↩