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

51. Memorandum From the Assistant Secretary of State for Far Eastern Affairs (Robertson) to the Secretary of State¹

Washington, July 31, 1956.

SUBJECT

• Military Assistance—Burma

1. Background:

The OCB on October 27, 1954, approved an “Operating Plan for Sale of Arms and War Materials to Burma”² providing for grant aid up to $20 million and, subject to OCB approval, the use of Section 401 funds. This plan was not implemented because of British delaying tactics and because the Burmese were unwilling to sign additional agreements required for conventional grant military assistance. With renewed Burmese interest at present, State has sought OCB approval since March 1956, to implement the 1954 “plan” using MSA Section 401 which would permit U.S. assistance without additional agreements and also permit Burmese long range token repayment. It was thought the OCB on May 2, 1956, had approved a modest “one shot” $5 to $10 million military assistance program for Burma under MSA Section 401, but Defense has since made it clear it does not support such a program. As a result of the meeting with Defense July 17, 1956, it has become obvious that the different views of State and Defense concerning military assistance to Burma will have to be resolved by the President.

2. Summary of Defense Position:

(a) Defense opposes military assistance to Burma on any terms other than full reimbursement for equipment and services supplied.

(b) A program of partial reimbursement assistance is in effect camouflaged grant aid and may involve the U.S. in long-term commitments prohibited by NSC Action 1550.³

(c) There is no military justification for military assistance to Burma and assistance to a “neutral” might adversely affect existing military alliances.

(d) The U.S. already is overcommitted for military assistance throughout the world and neither funds nor equipment are available for a program in Burma.

3. Summary of State Position:

(a) State, for political considerations, urges that modest military aid be made available on conditions acceptable to Burma, using MSA Section 401 authority and, if necessary, funds.

(b) Burma is becoming increasingly aware of the dangers of close involvement with the Communist bloc and is seeking Free World alternatives which should be made available if we are to prevent the slow absorption of Burma by the Communist bloc.

(c) The most important anti-Communist grouping in Burma is the military establishment, which merits our assistance to assure continuation and reinforcement of that favorable orientation.

(d) Modest assistance at this time should encourage a gradual shift of Burma’s neutralism toward a Free World orientation which not only would have a salutary effect on other neutral nations throughout the world but would also provide an additional factor of security to those of Burma’s neighbors allied to the U.S.

4. Current Status:

It was hoped this problem would be resolved when the NSC considered the revised NSC paper on Southeast Asia⁴ in which State and Defense differences are clearly underlined in a split recommendation.⁵NSC action was scheduled for early August but now has been postponed until August 30, 1956, and again may be postponed. In view of the desirability of giving the Burmese an early response to their request for military assistance, it appears unwise to await final NSC action on the Southeast Asia paper.

5. Recommendation:

That you seek the President’s approval of a modest military assistance program for Burma using MSA Section 401 authority and, if necessary, funds. Memorandum for the President (Tab A) is attached.⁶

1. Source: Department of State, Central Files, 790B.5–MSP/7–3156. Secret.
2. See footnote 4, Document 24.
3. NSC Action No. 1550, May 3, noted a statement by the President setting forth requirements that had to be met prior to any explicit or implicit commitments of foreign assistance. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council, 1956)
4. Reference is to NSC 5612, “U.S. Policy in Mainland Southeast Asia,” August 15. (Ibid.,S/S–NSC Files: Lot 63 D 351, NSC 5612 Series) Documention on the NSC 5612 Series is scheduled for publication in volume XXI.
5. This split recommendation is in paragraph 36. A Department of State and Office of Defense Mobilization joint proposal reads: “For political purposes, make available at Burmese request, on conditions acceptable to Burma, military aid in modest amounts, using if necessary Mutual Security Act Section 401 funds and authority.” The proposal by the Departments of Defense and the Treasury, the Bureau of the Budget, and the Joint Chiefs reads: “Upon Burmese request, make available military equipment and supplies on a reimbursable basis, as consistent with U.S. interests.”
6. Printed as Document 53.