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

7S7. On September 14 Foreign Minister gave me aide-mémoire2 expressing grave concern TG impact Thailand economy future PL–480 rice sales in Asia as these “to some degree deprive producing countries in Asia of chance to dispose of some of their exportable rice.” Foreign Minister said TG desires consult with United States Government as to how disposal of United States rice can be effected avoid disruption Thailand sales exportable surplus in future years.

Assured Foreign Minister United States aware impact its programs on Thailand and other South East Asia rice exporters; believed United States Government probably willing discuss problem informally at working level with TG on appropriate occasions. Stressed my personal view that such talks should look toward fuller exchange information rather than any type commodity agreement for sharing markets; emphasized United States Government most unlikely consider latter.

Conversations on friendly terms but as indicated this approach and growing volume statements to press, TG genuinely worried regarding prospects marketing its 1956 and later crops. I cannot over-stress political and economic importance this problem, and in interest avoiding possible serious strain United States–Thailand relations, recommend TG approach be met by constructive United States attitude. Airpouching text aide-mémoire with Embassy comments and recommendations.3

Bishop
  1. Source: Department of State, Central Files, 411.9241/9–1956. Confidential. Repeated to Rangoon.
  2. The Thai aide-mémoire was transmitted as an enclosure to despatch 206 from Bangkok, September 24, not printed. (Ibid., 411.9241/9–2456)
  3. In despatch 206, the Embassy suggested a reexamination of the P.L. 480 rice program together with a visit of a senior American official to Thailand to discuss the program.