69. Telegram From the Department of State to the Embassy in Burma1

79. Your 92 and 51.3 Concur general position Embassy has taken regarding additional assistance Burma. Believe in first instance GUB should cut spending less important projects. Agree importance internal security and willing carefully examine reasonable GUB proposals.

As you aware possibility police assistance discussed Washington with Ba Swe who agreed discuss in detail with Ambassador McConaughy Rangoon and arrange US survey group visit Burma (see memorandum conversation May 254).

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Suggest you encourage Kyaw Nyein to develop detailed proposals which US can study but with understanding US unable make any commitment additional aid at this time.

You may inform him that in view high priority internal security program, if additional US funds not available, US would be willing consider internal security projects under present dollar loan agreement.

With specific reference Kyaw Nyein’s mention roads, IBRD has indicated to GUB willingness consider assistance this field and ICA prepared consider project proposal under existing loan for initial survey project prerequisite to IBRD financing.

ICA still willing consider AEDF financing Burmese participation in engineering phase regional telecommunications project. Financing construction phase this project still under study with respect all participating countries. (CA–5566, 1/11/1957.5)

Costing aspects possible military assistance under active study but impossible develop specific recommendations until congressional action completed on pending mutual security legislation. (Messages this subject should continue be slugged “Limited distribution”.)

Dulles
  1. Source: Department of State, Central Files, 790B.5–MSP/7–1357. Secret; Limited Distribution.
  2. See footnote 2, supra.
  3. Supra.
  4. See footnote 3, Document 67.
  5. Not printed. (Department of State, Central Files, 780.5–MSP/1–1157)