892.61317/12–3046

The Minister in Siam (Stanton) to the Secretary of State

No. 224

Sir: I have the honor to refer to the Legation’s telegram No. 1413 of December 24 [22], 1946,64 reporting that modifications of the [Page 977] Tripartite Agreement of May 6, 1946 and the Anglo-Siamese Agreement of May 1, 1946 had been agreed upon and that the new proposals were accepted on December 24 [22] by exchange of notes covering the Memorandum of Understanding.

In this connection copies of all pertinent documents, as listed under enclosures,65 are transmitted herewith.

The principal modifications of the existing Agreements are summarized as follows:

1.
The present target figure of 1,200,000 tons of rice to be furnished by May 1, 1947 is replaced by a new target figure of 600,000 tons, which shall be made available for export between January 1 and August 31, 1947.
2.
The penalty provision shall take effect only from September 1, 1947 and then only with reference to the new target figure of 600,000 tons.
3.
Extension of the Tripartite Agreement to August 31, 1947.
4.
Establishment of a new basic price effective January 1, 1947 for 35% of milled rice ex mill at £20 per ton. (This is an increase in price from £12/14 per ton.)
5.
Application of an export tax on rice of £4 per ton to be paid to the Government of Siam by the purchaser in sterling or dollars at the option of the purchaser.

It will be noted that the Communiqué sets forth the essential provisions of the Memorandum of Understanding but omits reference to the additional measures provided for in paragraph 2. The Communiqué emphasizes the Siamese Government’s desire to fulfil its obligations and to supply rice to deficit areas. It concludes with a plea to all concerned to extend their closest cooperation to the authorities of the Government in order that Siam’s obligations may be fulfilled and that Siam’s rice production may be so increased as to lift, as soon as possible, the country out of the present adverse economic situation.

Respectfully yours,

Edwin F. Stanton
  1. Not printed, but see last paragraph of bracketed note, p. 975.
  2. None printed.