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

504. Telegram From the Embassy in Thailand to the Department of State¹

Bangkok, August 23, 1956—2 p.m.

532. On August 20 accompanied Moyer, ICA and Larson² on courtesy call on Prime Minister. After exchange amenities and expression deep appreciation United States aid, taking advantage Moyer’s request for indication economic aid projects to be given “top priority” Prime Minister expressed emphatically and at length his belief Thailand must have increased United States economic assistance in training skilled labor, in communication, particularly roads and railroads, and in development electric power. Replying Moyer’s urging for indication priority, Prime Minister said regretted impossible separate these three into relative priorities because “unfortunately each must have number one priority.” Prime Minister also indicated, as previously, desire for assistance in pet project “housing for the poor.”

Heretofore Prime Minister has always relied almost entirely upon subordinates to make approach regarding aid and even subordinates have never been as lengthy and as strong in their appeals for greater economic assistance. Because we had expected only courtesy call, Moyer, Larson and I were taken by surprise at Prime Minister’s personal presentation Thailand’s need and at length time he devoted this subject. Department will recognize at once significance fact that Prime Minister himself expounded at length (over one hour) these matters. It now clearly indicates Thailand Government has decided determine whether or not United States intends increase economic aid this country making possible basic developments necessary enable Thailand economy move toward industrialization. United States failure respond this request would, my opinion, have serious consequences.

Believe United States cannot and should not attempt buy Thailand friendship or alliance. However, in light Prime Minister’s approach consider necessary lay before Department, our feeling that United States in its program of economic aid to foreign countries must accord Thailand “most favored nation treatment”. United States cannot take Thailand for granted. Difficult this country, as friend and ally, understand United States failure treat it as generously as other nations. While fully cognizant desirability prevent such countries as India, Burma, Laos, Cambodia and Indonesia going further toward Communist bloc, and therefore can understand, in part at least, motivation continue aid such countries, feel impelled point out if Thailand through failure receive “most favored nation treatment” were to conclude United States not appreciative Thailand friendship and support and, as Deputy Prime Minister told Vice President, United States gives more aid to neutralists than to Thailand, United States interest in Southeast Asia might be seriously harmed. Futhermore, if United States desires continue press leadership role upon Thailand believe Department needs assure necessary material resources and support be given Thailand enabling it discharge that role.

Recommend specifically:

(1) Department do all possible convince World Bank soonest desirability and urgently Yanhee Dam loan. (Approximately United States $46 million.)

(2) United States Government provide necessary baht funds, possibly under long-range “second mortgage terms”, for Yarnhee Dam in addition to the dollar funds provided by World Bank. (Approximately United States $25 million.)

(3) United States Government offer build, as part line of communications Bangkok to Laos, multiple lane highway between Bangkok and Dormuang Airfield, cost about 12 million dollars.

(4) United States Government consider urgently sending team experts (engineers and economists) Thailand and survey line of communications from deep sea port near Bangkok to terminal facilities within Laos.

Because international character line of communications, projects (3) and (4) (Embassy telegram 531³) might perhaps be financed by Asian Economic Development Fund and possibly given SEATO label.

Country team concurs in foregoing recommendations and urges United States Government give early evidence sympathetic consideration Prime Minister’s plea for substantial increase economic aid Thailand.

Emb and USOM in consultation Thailand Government studying possibilities skilled and semi-skilled labor training projects Bangkok area.

If Department reaction favorable Prime Minister’s request, hope to be authorized at early date so inform Prime Minister.

Bishop

1. Source: Department of State, Central Files, 792.5–MSP/8–2356. Confidential.
2. Lloyd K. Larson, Director of USOM in Thailand.
3. In telegram 531 from Bangkok, August 23, the Embassy forwarded recommendations relating to a proposed Thailand–Laos transportation complex. (Department of State, Central Files, 792.5–MSP/8–2356)