558. Telegram From the Embassy in Thailand to the Department of State1

725. Reference Icato 467.2

I greatly appreciate Washington efforts in obtaining increase FY 61 DS level to $19.5 million. Must however note that net amount available for strictly economic assistance (that is total of DS less amount for military construction) will be less in FY 61 than in FY 60. Do not intend disclose this figure to TG with addition TC until Dept’s decision made re: Deptel 4983 and receipt information re: levels special assistance and availabilities to TG from regional project finding. Total availabilities for FY 61 urgently needed inasmuch as FY 60 assistance totaled $24.639 million including $18.5m. DS, $4.3m. TC, $315,000 special assistance funds for malaria eradication, $602,000 added for technical assistance, $325,000 for special private investment development fund plus $597,000 for regional projects. These figures given Sarit by my letter November 7, 1959 and Unger’s letter July 1, 1960,4 copies which sent Washington. Your advice to date indicates total only $23.6 million for FY 61. Difference FY 60 $24.639 million and present FY 61 availabilities $23.6 will be accepted by TG as reduction. Urgently request advice re approval special assistance and regional project funds for FY 61, hopefully thus justifying statement proposed Embtel 6525 numbered para 6 “the total level of aid programs for Thailand for fiscal year 1961, including military as well as economic assistance, is higher than that provided in fiscal year 1960.” (See Deptel 498, numbered para 6)
I had of course hoped for DS level $20.6 million as recommended Embtels 243 and 4116 because of high level military construction in FY 61 DS program and primacy in Thailand’s own thinking of economic development. I still hope it will prove possible raise DS level to $20.6 million, which is the program I have supported as the minimal level.
Project level of $1.3 million apparently excludes dollar funding economic feasibility surveys for which ICA/W proposes to use TC contingency funds. USOM classified project as DS because of nature of [Page 1148] facilities to be surveyed. However, willing accept ICA/W recommendations provided $300,000 made available to cover dollar component TC funds. Attention called necessity revise proposed FY 1962 program increasing TC level to $7,265,000 to provide forward funding this project.
  1. Source: Department of State, Central Files, 792.5–MSP/10–2260. Secret; Priority; Limit Distribution.
  2. Not printed.
  3. Document 555.
  4. Documents 535 and 553.
  5. Document 556.
  6. Regarding telegram 243, see footnote 2, Document 554. In telegram 411, September 1, Johnson briefly expressed his concurrence in the arguments contained in telegram 243. (Department of State, Central Files, 792.5–MSP/9–160)