498. Telegram From the Embassy in Thailand to the Department of State1
3529. Prince Wan informed DCM2 of Thai Cabinet decision today remove non-strategic items from list goods embargoed under UN resolution. He explained this would free, inter alia, rice and timber but not tin or rubber.
[Page 890]Wan conceded no real economic justification existed for this action and emphasized decision would not result in appointment trade commissioner to Red China or affect Thai attitude towards recognition Red China.
DCM stated Thai decision would be deeply regretted by U.S. Government, not only because of general political implications but also because coming in wake U.K. decision re Malayan rubber, general impression of crumbling sanctions vis-à-vis Red China would be strengthened.