77. Telegram From the Embassy in Burma to the Department of State1

381. I conveyed substance Deptel 3652 to Ba Swe yesterday in presence Barrington. While I was careful to state all necessary qualifications, I presented news as positive development of considerable import to Burma. Stressed effort we had made to accommodate Burmese desires as we understood them. Ba Swe reaction one of quiet elation. He was obviously gratified at exemption from assurances which would have been required had we used Section 142(a). Said GUB still adheres to fundamental tenet of no grant aid and GUB would like liberal terms and pricing, making compensation essentially a gesture.

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Ba Swe said reports from Burmese representatives in Washington made him hopeful assistance on police equipment also forthcoming. When I asked if projected military assistance could provide sufficient budget relief, directly or indirectly, to enable financing of internal security program, he indicated army reorganization has high priority in order provide effective deterrent to aggression “from any quarter” (i.e., capability of staging delaying action until outside help could arrive) and could not be accomplished if any substantial part of US military assistance or its equivalent were transferred from defense to police.3

Comment: I am inclined to suspect this may be essentially army viewpoint and will endeavor ascertain whether Prime Minister and Kyaw Nyein may not be prepared support budget-relief expedient suggested above.

Ba Swe indicated likelihood GUB desires send military mission to Washington.4

Although Ba Swe not demonstrative by nature, evident from his demeanor he considers this significant milestone in Burma–US relations.

Message unsigned
  1. Source: Department of State, Central Files, 790B.5–MSP/10–257. Secret; Limited Distribution.
  2. Supra.
  3. A U.S. police survey team visited Burma in November and December; its recommendations were summarized in telegram 592 from Rangoon, December 6, and telegram 705 to Rangoon, January 15, 1958. (Ibid., 890B.501/12–657 and 890B.501/12–2757, respectively) An agreement reached on June 16, 1958, for the sale of U.S. police equipment to Burma on deferred payment terms is printed in Department of State Bulletin, August 4, 1958, p. 222.
  4. A Burmese military mission visited the United States in December. An agreement providing for the sale of U.S. military equipment and services to Burma in exchange for Burmese currency was effected by an exchange of notes signed at Rangoon on June 24, 1958; for text, see 9 UST 1069.