Office of the Historian

47. Telegram From the Department of State to the Embassy in Burma1

Washington, June 28, 1956—8:56 p.m.

1305. Joint State–ICA message. Deptel 1138.2 Battle Act directly controls activities of US Government only not other governments. After complete review, determination reached Burma eligible US assistance.

FYI Following considerations taken into account in review: 1) for foreign policy reasons, assisting Burma urgent priority; 2) because of declared neutrality GUB will not give assurances in manner and form originally requested by US (Deptel 989, Embtel 1246s);3) assurances regarding rubber not vital because licensed exports to CPR only 5,000 tons and Burma’s estimated export potential only ten-twelve thousand tons annually which would not greatly change bloc capabilities if all shipped CPR which not probable; 4) Cabinet officer (Kyaw Nyein) has stated to Embassy GUB not contemplating shipping strategic minerals to bloc; 5) no other known potential Battle Act items available in Burma for shipment to bloc or mentioned in Burma’s trade agreements with bloc; 6) GUB has licensing controls over strategic goods including rubber which meet objectives Section 202 Battle Act; 7) Burma currently cooperating with US to extent required by Section 203 of Battle Act including supply adequate reports; 8) Burma advised that provision of Battle Act will require (a) [Page 76] termination of US assistance if any Title I, Category A items are shipped to Communist bloc, or (b) a determination of the President regarding the continuation of assistance if Title I, Category B goods are shipped to bloc. (Information in final point conveyed Ambassador Win May 11 and 12. U Nu letter to President Eisenhower May 224 shows GUB cognizant these Battle Act requirements.) End FYI.

Action cables follow.

Dulles
  1. Source: Department of State, Central Files, 411.90B41/5–856. Secret.↩
  2. Document 39.↩
  3. Documents 31 and 38.↩
  4. See Document 40.↩