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

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

Washington, September 27, 1957—7:46 p.m.

365. Deptel 241.² You may inform Ba Swe US, subject availability of funds, prepared to make available to Burma military assistance up to $10 million in form equipment, training and advisers if desired. While this amount may not appear as large as GUB would desire, preliminary costing estimates of General Erskine’s recommendations indicate most of first priority army items can be made available within this limit. As next step suggest you sound out GUB re feasibility of sending Burmese military mission to Washington to work out details priorities and accounting procedures.

Funds for this program will come from MAP funds under authority Section 401(a) in order meet Burmese objections assurances required Section 142(a).³ Section 505(a) would permit GUB reimburse in local currency over long period time all or part of total. Also GUB could purchase in dollars additional needed equipment under Military Sale Agreement as cover for assistance which we will make available on grant basis.

Preliminary indications, no piston aircraft available, and river craft for navy would require special construction which both expensive and time consuming. Therefore major items requested for air and navy not likely available unless army items drastically cut which not believed feasible.

Presidential 401(a) determination will be sought to permit obligation funds when we have clear indication mutually acceptable program and when procedures can be developed.

Dulles

1. Source: Department of State, Central Files, 790B.5–MSP/9–2757. Secret; Priority; Limit Distribution.
2. Document 71.
3. Section 142(a) of the Mutual Security Act of 1954, as amended, set forth various assurances required of nations receiving aid under Title I of the act; Section 401(a) was included in Title IV, which did not require such assurances.