573. Telegram From the Embassy in Thailand to the Department of State1
926. Ref: Deptel 661.2 This is Country Team message. I am at loss make specific suggestions last para reftel regarding US–TG talks until I know better what we are talking about. US already committed to discussions. In terms obtaining most favorable impact US–Thai relations urge these take place soonest. However, inherent this recommendation is necessity have answers to such questions as: what is new type program; how much US assistance involved; what is precise [Page 1165] purpose new survey team; what is proposed composition this team; etc. We assume Country Team will participate fully in development firm US position.
While I urge speed opening formal discussions TG on “new type” program, and concur concept study group in developing US-TG positions, I also strongly urge need for clarity US thinking before serious discussions begin. US position among other points must, for example, be coordinated: with TG’s own three and six year plans now well advanced; with FY 61 and 62 DS and TC programs, especially taking into account outstanding commitments; with need engineering feasibility studies in FY’s 61 and 62 from grant program; with IBRD plans. As Dept already aware I believe Thailand’s political and economic position, its continued and firm adherence free world position, its emphasis on private enterprise concept as approach to economic growth, all make Thailand excellent demonstration country in SEA for US assistance. However, imperative this demonstration be good, which is why I urge clear thinking our part before exposing thinking to Thais.
Speed on our part if coupled with clarity in our thinking would also assist obtaining speed and clarity on Thai part in taking additional steps to mobilize resources. As indicated Embtel 6523 believe Thais already doing good job this respect and much of what we recommend as Thai quid pro quo is continuation and intensification present policies, e.g., to assure stability baht, avoid excessive inflationary deficits, promote private investment under recently enacted law, draw up economic plan for public sector, emphasize agriculture and education in allocation public resources, foster tourism, etc. Main new actions we recommend are to revise revenue code and tax administration to maximize govt revenue under equitable system not destructive of incentives, and to improve utilization civil service manpower. Suggest examination country program book FY 62 which spells out suggested Thai quid pro quos.
- Source: Department of State, Central Files, 792.5–MSP/11-2960. Secret; Limit Distribution.↩
- Document 564.↩
- Document 556.↩