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

526. Telegram From the Department of State to the Embassy in Thailand¹

Washington, September 28, 1957—6:43 p.m.

852. Deptel 805.² Re para 5 reftel³ request your recommendations on basis consultation appropriate members Country Team re following:

1. Extent to which we may be able to use various aspects aid program for leverage in evolving political situation and desirability preparing for this eventuality by putting aid programs on ad hoc basis to extent feasible. This connection should we:

a. Hold up temporarily implementation any specific economic projects already under way or proposed.

b. Hold up implementation non-project component FY 58 DS aid program by delaying issuance further PA’s.

c. Postpone construction or hold back deliveries consumables under military assistance program.

d. Postpone delivery any particular military hardware items especially desired by Thai armed forces.

2. As you aware DS aid level will be substantially lower than FY 57 because establishment Development Loan Fund and Congressional reduction aid appropriations. Will it do least harm inform Thai Government re DS level before or after election? To do so before would appear involve some danger prejudicing provisional government’s position as well as strengthening influence neutralist arguments on Sarit and associates and possibly influencing them line up with leftists or neutralists during election. Post election notification could have adverse effect accentuating pro-neutralist trend of government inclined toward neutralism or undermining government favorable US and free world. Adverse effect post-election notification likely be increased by failure inform Thai at roughly same time as other countries receive notice of aid levels probably within next two weeks.

3. Timing notification Thai Government TC aid level.

4. Should we attempt ascertain if provisional government stands behind consolidated loan agreement proposal or await formation new government after elections.

Dulles

1. Source: Department of State, Central Files, 792.00/9–2357. Secret; Priority; Limit Distribution. Drafted by Young and Bushner and initialed for Dulles by Jones.
2. In telegram 805 to Bangkok, September 24, the Department outlined the U.S. attitude toward the coup and U.S. policy toward the new government. (Ibid.)

3. Paragraph 5 of telegram 805 to Bangkok reads:

   “In order maintain flexibility of approach envisioned above, realize we cannot now establish firm policies re aid programs. Unless it is ascertained that political and economic factors which dictated existing programs no longer exist, we expect continue operate on basis existing plans and objectives, but without making any commitments to Thai leaders. Since aid allocations not yet finally made, we will communicate later this matter and related questions.”