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

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

Washington, November 9, 1960—9:41 p.m.

661. Joint State/ICA message. Embtel 652.² In your approach Sarit,³ should he take occasion request elaboration re FY 61 economic aid levels, you should be guided by Icato 467.⁴ Believe it advisable avoid detailed comparison between aid levels and components FY 60 and 61. Re military assistance, JUSMAG will discuss FY 61 MAP with Thai military in near future.

Should Sarit request elaboration U.S. intentions assisting Thai economic development, you should say that this entirely dependent on results of our joint exploration of problem. In general foresee increased reliance on loans from IBRD, EXIMBank, DLF and possibly from other free world sources and declining annual grant aid levels. Most importantly, however, we believe that in order to accomplish accelerated economic growth RTG has to make better use of its own resources both in terms of mobilizing them to a much greater extent and applying them more effectively. Discussion of future U.S. aid should be related to exploration effective RTG self-help measures.

FYI. We believe timing of US–RTG discussions should depend on degree RTG enthusiasm for holding such talks. Should RTG demonstrate sincere and pressing interest we wish to capitalize on momentum and will be ready for discussion probably early in new year after preliminary studies in Washington. If there is little indication of hoped for attitude we may wish to delay US–RTG consultation until later.

We now studying possibilities new type program directed specifically toward inducing greater effort directed toward economic and social development in critical countries of Asia. Thailand selected as a prime candidate such study. Expert study group being organized under ICA auspices to survey problems and submit recommendations. Expect group will commence study in Washington shortly after December 1 and may proceed Bangkok for on-the-scene study thereafter. While in Bangkok it would not negotiate with RTG but would survey and informally discuss matters with CT and appropriate RTG officials. Group’s recommendations not likely be available much before April.

While we consider proposed study useful we may not wish delay initiation discussions with RTG until completion study if RTG strongly responsive your approach Sarit, especially since new type program, even if authorized, would be only complementary to other external loan assistance. If RTG response negative or hesitant we may wish to wait till completion ICA study.

Your views on above recommendations on timing US–RTG talks requested. Also wish to obtain considered views and recommendations of CT at early date on best means of increased Thai mobilization their resources and most effective U.S. approach to induce such. End FYI.

Herter

1. Source: Department of State, Central Files, 792.5–MSP/11–960. Secret; Priority; Limited Distribution. Drafted by Wile along with a number of officers from ICA and other interested offices which also cleared the telegram; approved by Parsons.
2. Document 556.
3. To deliver the President’s letter, supra.
4. See Document 558.