Foreign Relations of the United States: Diplomatic Papers, 1945, The British Commonwealth, The Far East, Volume VI

741.92/9–2945

The British Embassy to the Department of State ⁷⁶

September 1945

Aide-Mémoire

In accordance with the intention expressed in paragraph 28 of His Majesty’s Embassy’s Aide-Mémoire of September 8th His Majesty’s Government instructed Mr. Dening on September 10th to arrange for a Siamese Mission to visit Kandy and to present to the Head of the Mission on his arrival the Heads of Agreement and Annex. Action on these instructions is now proceeding. His Majesty’s Government have nevertheless studied most carefully the State Department’s further memorandum of September 19th with a desire to contribute what they can to bringing their views and those of United States Government into still closer harmony.

Siamese Rice

2. The questions raised in the State Department’s memorandum as to the procurement and distribution of rice do not in the view of His Majesty’s Government raise serious difficulties. It is common ground that all rice procured from Siam, as from elsewhere, should be sent to those recipients to which the Combined Food Board gives highest priority. These would not necessarily be the recipients most equitably entitled to participate in the distribution of the free rice.

[Here follow paragraphs numbered 3 through 6 dealing with various procedural matters regarding rice including the procurement of exportable rice by the Rice Commission, the allocation of free rice, and the payment in foreign exchange to Siam for the remainder of its rice exports.]

7. His Majesty’s Government welcome the State Department’s willingness that the Chairmanship and the bulk of the operational personnel shall be British. As regards the direction of the Commission His Majesty’s Government agree that all decisions of the Commission should be reached by agreement between the British and American Representatives on it, any serious difference of opinion being settled by discussions between London and Washington. There must however be a very large number of questions not all of which can be settled locally e.g. procurement and distribution of bags, milling, and the allocation of shipping, and the relative unimportance or urgency of which may render undesirable reference to more than one authority. His Majesty’s Government contemplate that in such cases, the decision will be taken by them though naturally the United States Government will be kept fully informed.

8. All information on matters affecting Siamese Rice obtained by any British Rice personnel who may be situated in Siam before the American Rice personnel will of course be communicated to the United States Government.

9. His Majesty’s Government agree to take paragraphs 10 and 11 of Annex to State Department’s Aide-Mémoire of September 1st as the basis of discussion regarding the duration and termination of the proposed agreement but would like to give further consideration to the precise terms of these paragraphs.

10. As regards paragraph 11 of the State Department’s memorandum His Majesty’s Government are confident that any successor body to the Combined Boards determined by the United States and Great Britain would satisfy the requirements of Clauses 15 and 16(B) and that the Siamese Government could readily be brought to accept this view if any question should arise. His Majesty’s Government consider therefore that there is no need to alter the existing wording in order to meet the points in State Department’s Memorandum.

11. His Majesty’s Government agree to the amendment to Clause 15 described in paragraph 12 of the State Department Memorandum.

Annex

12. As regards the general observations of the State Department on the Annex His Majesty’s Government feel that these are in part based on a misapprehension as to the exact scope of their proposals. The Heads of the Agreement and Annex together constitute the terms on which His Majesty’s Government are prepared to liquidate the state of war with Siam and to resume normal and friendly relations with the Siamese Government. As stated in Clause 6 of Section B of the Heads of Agreement, all or any of the matters specified in the Annex may be covered either in an Agreement or Agreements with the Supreme Allied Commander or in such other manner as may be satisfactory to His Majesty’s Government. Clauses 3, 6 and 11(A) of the Annex have already been covered by Military Agreement No. 1 concluded by Admiral Mountbatten with the Siamese Military Authorities. As regards the remaining Clauses of the Annex, His Majesty’s Government have not yet reached definite conclusions as to the manner in which they should be covered, but in view of the State Department’s observations regarding Clauses 4, 13 and 14 they can at once give an assurance that these Clauses will not be included except with the concurrence of the United States, in any Agreement to be signed by Admiral Mountbatten in his capacity as Supreme Allied Commander.

13. His Majesty’s Government have given very careful further consideration to the views of the United States Government on Clause 4 of the Annex but they regret that they cannot see their way to amending this Clause as suggested. In terminating the state of war between Siam and themselves in the manner now proposed they feel a certain responsibility for safeguarding the legitimate interests of their Allies and it would be difficult for them to justify a limitation on compensation for loss and damage to Allied property rights and interests which they are not prepared to adopt where British interests are concerned. It will of course be for each of the Allied Governments to decide whether or not to avail itself of Clause 4.

14. As regards Clause 11 His Majesty’s Government think there is some misunderstanding since the text handed to Siamese Mission by Mr. Dening in fact opens with the words “for so long as may be necessary for the conclusion of all matters of military concern to the Allies arising out of the settlement of the war with Japan”. The views of the United States Government in this respect have already therefore been met.

15. The views of the United States Government regarding Clause 13 are still under consideration by the departments of His Majesty’s Government concerned. It is hoped to communicate views of His Majesty’s Government on this matter very shortly.

16. As regards Clause 14 His Majesty’s Government are reluctant to accept any restriction which might have the effect of hampering them in any action which may be necessary in connexion with concealed Japanese assets or other matters such as Safehaven⁷⁷ or indeed any financial or economic matters arising out of the war with Japan.

Heads of Agreement

17. Clause 4 of Section D is intended to bridge the gap until the prewar Treaty of Commerce which was abrogated by the Siamese Declaration of War can be replaced by treaties to be freely negotiated under Clauses 2 and 3 of that Section. Clause 4 provides for the observance by Siam of (a) the provisions of 1937 Treaty and (b) certain additional provisions which are such as His Majesty’s Government and Government of India would hope to see embodied in the new treaty to be freely negotiated by Siam. In an endeavour however to meet the views of United States Government, His Majesty’s Government are now proposing to amend Clause 4 in two respects:

(1) for the words “in addition” substitute the words “except in regard to matters where the treaty specifically provides to the contrary”:

(2) after the words “British professional men” insert the words “on grounds of nationality”. It is true that the requirements of Clause 4 impose some limitation on Siamese freedom of action as indeed do all other stipulations which His Majesty’s Government think it reasonable to put forward as conditions on which they are prepared to resume relations with the Siamese Government. The United States Government may rest assured however that His Majesty’s Government will interpret this restriction in a reasonable manner. His Majesty’s Government can moreover give an assurance that they do not seek to exercise this temporary unilateral control over the power of the Siamese Government to determine the conditions relating to Siamese economy and trade in such a way as to confer any exclusive privileges on British nationals or to secure any benefit which they would not consider it equally reasonable for United States nationals to obtain from the Siamese Government.

18. His Majesty’s Government have noted with appreciation the readiness of United States Government to defer the resumption of diplomatic relations with Siam for a reasonable period and are happy to concur in the United States Government’s proposal that British and United States recognition of the Siamese Government should, if possible, be simultaneous and that the first diplomatic representatives of the two Governments should have equal status.

76. Handed by Mr. Everson to the Chief of the Division of Southeast Asian Affairs on September 29. In a memorandum of conversation of that date, Mr. Moffat stated that Mr. Everson “informed me that he was instructed to state that with regard to Clause 12 of the Military Annex it was intended that all Siamese shipping should be controlled by U[nited] M[aritime] A[uthority] which would apply the usual principles, and that no reallocation was contemplated of vital Siamese river or coastal vessels. He also stated that in Clause 17 the British agreed to eliminate the word ‘such’ in the opening clause of the second sentence.” (741.93/9–2945)
77. For documentation on this subject, see vol. ii, pp. 852 ff.