549. Memorandum From the Deputy Director of the Bureau of Intelligence and Research (Berry) to the Acting Secretary of State1

SUBJECT

  • Intelligence Note: Thanat’s Resignation Points Up Stresses in US-Thai Relations

The resignation on May 12 of Thailand’s Foreign Minister, Thanat Khoman, which he attributed to the conclusion of the US-Indian grain agreement earlier this month,2 is a reflection of growing Thai irritation with the United States and foreshadows new stresses in US-Thai relations. The Thai may be expected to step up their efforts to obtain more favored treatment from the United States, and probably intend to press this issue in connection with the upcoming SEATO Council meeting in Washington.3 They might also make some limited moves in the direction of the Sino-Soviet Bloc, such as by removing their embargo on trade with Communist China. However, personal factors probably also played some part in Thanat’s resignation. Furthermore, despite Thanat’s reported threat that Thailand would undertake an “agonizing reappraisal” of its position in SEATO, we do not believe that responsible Thai leaders are seriously contemplating abandonment of Thailand’s close ties with the United States.

For some time past, Marshal Sarit and other Thai leaders have been resentful over what they have considered shabby treatment of Thailand in the apportionment of US economic aid. They have made pointed comparisons with the help given by the United States to neutralist countries, particularly to Cambodia with which Thailand has a longstanding feud, and more recently to India. The Thai appear convinced that the new four-year commitment by the United States to supply a very large quantity of wheat and rice to India will cut into Thailand’s own market for its predominant export earner, rice.

The personal position of Thanat, a former Ambassador to the United States and considered a good friend of this country, had apparently been weakened not only by his inability to obtain more favorable treatment for Bangkok but also by frictions between himself and King Phumiphon and possibly between himself and various leaders of the ruling military group. Thanat may have seen in the US-Indian [Page 1131] grain agreement a patriotic basis for resigning before being dismissed. It is also possible that Thanat, an emotional individual, resigned in pique and might resume his position in the cabinet at some later date.4

  1. Source: Department of State, Central Files, 611.92/5–1360. Confidential.
  2. The agreement was concluded on May 4; the text is in 11 UST (pt. 2) 1544. An announcement by the Department of State summarizing the terms is in Department of State Bulletin, May 30, 1960, p. 889.
  3. The sixth meeting of the SEATO Ministerial Council took place in Washington, May 31–June 2; see volume xvi.
  4. Prime Minister Sarit Thanarat refused to accept Thanat’s resignation and he stayed on as Foreign Minister.