Foreign Relations of the United States, 1958–1960, South and Southeast Asia, Volume XV

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

Washington, June 6, 1958—8:20 p.m.

2989. Your 3330.² Appreciate suggestion joint press release which we plan discuss with Sarit at final Sarit–Robertson meeting and issue subsequently. Thoroughly agree some gesture should be made to Sarit preclude talks ending on completely negative note. Your suggested topics one, two, three and five covered in draft we now preparing.

As for loan applications (topic 4) EXIM Bank and DLF giving close study interim power application; additional data needed subject of DLF–EXIM telegram under preparation. Bangkok distribution and water supply applications require additional data before further consideration. Therefore, no commitment possible present time on any of these applications. However, in press release we plan mention fact Thai have submitted these applications which now under review. Should loans be approved prior Sarit departure they would of course be reflected in press release.

Since dredge application approved May 9 we could tie-in to Sarit visit if considered desirable by latter and Thai agree to conditions (Icato 1440).³

Have also looked into possible impact projects including stationing naval vessel Bangkok harbor or loan of mobile electric power units from Army to augment Bangkok electric power pending construction interim power plant. Both of these proved too expensive and technically not feasible due fact US 60 cycle and Bangkok 50 cycle. Mobile military water purification units to increase Bangkok water supply also looked into but too costly operate.

Cholera relief measures and regional projects seem best assistance we can exploit now. Do you believe full story cholera aid could be played up in any way to help Sarit? ICA/W attempting expedite program approval telecom project and we hope get commitment funds this project in time to link with Sarit visit.

Your comments requested soonest.⁴

Dulles

1. Source: Department of State, Central Files, 792.551/5–3158. Confidential; Priority. Drafted by Wile; cleared with ICA, DLF, and the Export-Import Bank; and approved by Robertson. Repeated to CINCPAC for POLAD.
2. Document 483.
3. Not printed.
4. Ambassador Johnson replied in telegram 3380, June 8: “Apparent Department and Embassy thinking along same lines and I am entirely agreeable to whatever Department able work out.” (Department of State, Central Files, 792.551/6–858)