525. Note From the Acting Secretary of State to the Thai Ambassador (Visutr Arthayukti)1
Excellency: Referring to Your Excellency’s note No. 907/2502 dated July 17, 1959 regarding sales of rice by the United States to [Page 1084] Indonesia under Public Law 480,2 I have the honor to make the following comments:
According to information received from the American Embassy in Bangkok, the Acting Minister of Economic Affairs informed the Embassy on December 19, 1958 that in view of the limited quantity involved, Thailand would not object to a proposed sale of 50,000 tons of rice to Indonesia. Later, on January 20, 1959 the Acting Minister added a qualification to the effect that Thailand wished to be assured that it would be able to sell to Indonesia in 1959 as much rice as it did in 19583. On March 4, 1959 the Embassy, acting on instructions, informed the Ministry of Economic Affairs that the United States Government would be unable to intervene directly with the Government of Indonesia in this matter. It was stated further that the United States is aware of Thailand’s problems in disposing of rice in 1959 and, therefore, in disposing of surplus rice in Indonesia under PL 480, the United States would take special precautions against displacing exports from Thailand and other free world rice suppliers. With respect to the sale to Indonesia of an additional 75,000 tons of rice, the Embassy consulted with the Ministry of Economic Affairs in mid-April, 1959. In view of the condition of this sale that Indonesia import no less than 600,000 metric tons of rice from free world sources during calendar year 1959, the Embassy was informed that the Thai Government would not object to the sale. The Indonesian Government, subsequently, indicated that owing to prior commitments involving heavy rice deliveries in calendar year 1959, it could not accept a calendar year basis and suggested in lieu thereof, the twelve-month period beginning June 1, 1959. The United States agreed to this suggestion since it was felt that otherwise Indonesia would have been unable to accept the offer of 75,000 tons of rice. It was also felt that rather than purchasing for hard currency the equivalent amount of rice from Thailand, or other traditional suppliers, the Indonesian Government might have turned to other sources. Consequently, it would appear that the change of dates advances rather than affects adversely the interests of Thailand and other free world suppliers.
It should be noted that in setting a usual marketing requirement, the United States cannot, for obvious reasons, obtain assurances of specific purchases from specific countries. Rather, it can only establish a usual marketing requirement on a global basis. In this regard, it is believed that in view of Indonesia’s current foreign exchange position the 600,000 ton figure required of the Indonesian Government is reasonable, assures the maintenance of opportunities for free world exporters [Page 1085] to sell rice to Indonesia and take into account the interests of Thailand as well as those of other free world suppliers of rice to Indonesia.
Your Excellency may be assured that the Department has welcomed receiving the views of the Thai Government in this matter as expressed in Your Excellency’s note and in subsequent discussions; and will be glad to discuss this matter again at any time. Your Excellency may be further assured that the United States Government will continue to take special precautions with respect to PL 480 sales as they may affect Thailand.
Accept, Excellency, the renewed assurances of my highest consideration.
- Source: Department of State, Central Files, 411.9241/7–1759. No classification marking.↩
- The Thai note is not printed. (Ibid., 411.9241/7–1759) For text of the Agricultural Trade Development and Assistance Act of 1954 (P.L. 480), as amended through September 6, 1958, see American Foreign Policy: Current Documents, 1958, pp. 1535–1538.↩
- Namely 130,000 tons, according to the Thai note.↩