Foreign Relations of the United States, 1955–1957, Southeast Asia, Volume XXII

497. Memorandum From the Director of the Office of Southeast Asian Affairs (Young) to the Assistant Secretary of State for Far Eastern Affairs (Robertson)¹

Washington, June 7, 1956.

SUBJECT

• Thailand

Various reports from Thailand point to disturbing signs and trends, particularly the increased Chinese Communist campaign to subvert the Thai people and to intimidate the Overseas Chinese. These reports also allude to a reassessment of relations with the United States which some Thai leaders appear to be making. I am apprehensive that we are not sufficiently aware of these trends and therefore not concentrating the most effective means for dealing with them. Accordingly, I think we should give more attention to Thailand and examine the desirability of stepping up our programs and operations there. In my opinion we unfortunately lack the information in Washington on which to evaluate these trends or to determine more effective courses of action. I have checked over the despatches and telegrams from Bangkok sent in during the past several months and cannot find sufficient degree of political and economic reporting and evaluation to help in the formulation of policy and programs. I am rather concerned that there have been so few recommendations from the mission regarding Thailand.

In my judgment we should be actively considering an expansion of economic and technical assistance for Thailand, an acceleration and simplification of aid procedure for that country as well as many others, and a rapid increase in the impact and effectiveness of our aid throughout Thailand. For example, economic assistance for FY 57 is to be continued on virtually the same magnitude as FY 56, that is, about $30 million. However, at the urging of this Bureau ICA is tentatively programming $50 million for FY 58. I am afraid that effects of that increase will be much too long in coming, particularly in view of the elections scheduled for the spring of 1957.

One of the difficulties in dealing with the problem of neutrality and collective security in Asia is that our Asian allies question U.S. aid for neutrals and make invidious comparisons between the relative amounts. I believe it to be the view of this Bureau that we cannot and should not exclude the one for the other. Aid for neutrals is a contentious issue in Thailand. There are two possible ways to reduce this attitude. One is to explain to the Thais the vital importance to Thailand of maintaining the security and independence of all its adjacent neighbors two of whom are neutrals. The other way to allay such criticism is to increase our assistance where it can be justified on its merits. For example, the Thai Government has already suggested an increase of some $20 million for hospitals, schools and such projects in order to produce an effect on the Thai population.² With elections coming up in April, 1957, and a political campaign in the offing, the Thai Government is anxious for support from us and from the majority of the Thai people. The ICA mission in Bangkok is already undertaking a re-evaluation of its programs and operations.

I have no general recommendations to make in this memorandum except to express the hope that you may be able to use your influence in high levels in Washington to emphasize the vital importance of doing everything we can to strengthen and maintain a free Thailand strongly allied to the U.S. and developing into a resourceful partner in the long-run struggle against Chinese Communism in Asia. Aside from pointing this out in the State Department and ICA, there is one other concrete matter. I would hope that you might mention to Mr. Black or Mr. Garner of the IBRD the desirability of financing for the Yanhee Dam.³ If the IBRD could approve this project in the near future it would mean a great deal to Thailand and to our objectives there.

1. Source: Department of State, SEA Files: Lot 58 D 782, U.S. Grant Aid. Confidential.
2. See footnote 8, Document 489.
3. The Yanhee hydroelectric and irrigation project was proposed for IBRD financing as an undertaking that would supply power for the Bangkok area as well as the central plain of Thailand, and would also provide for flood control and the improvement of irrigation in the plain.