Office of the Historian

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

Bangkok, March 15, 1960—5 p.m.

2726. Country Team has fol observations to make on Deptel 2330.2

Appreciate problems created by inclusion POL in MAP for Thailand as noted in reftel. However, political-security justification for inclusion POL in MAP as strong today as at any time in past. Furthermore, reduction in MAP allotment will coincide with reduction grant economic aid. Moreover, do not see relevance of allusion in para a to US financing import of POL under economic aid program since this is device by which counterpart funds generated for financing various USOM programs. Re (b) and (c) should be remembered Thailand currently placing major emphasis on economic development. Thai budgetary allotments for military reduced FY 60 under pressure this emphasis and we do not foresee likelihood any reversal this development even to fund relatively small amount POL at stake. Net result of reduction MAP-supplied POL for Thai Armed Forces, therefore, will almost certainly be cut-back Thai military effort, as was case last year, most probably in utilization POL-consuming operations such as RTAF training flights. Adverse effect will be magnified by fact quantity and value POL requirements will increase with each new increment programmed F–86 aircraft. Country Team unable suggest any other item now financed by TG which MAP could justifiably support as [Page 1118] substitute for POL. In any event, wish repeat frequently reported Country Team recommendation that Thai Govt be informed 18 months in advance of any reduction POL support Thai Armed Forces. This would preclude any reduction prior FY 62.

Chief JUSMAG advises that gradual cut-back MAP POL for RTAF to amount in 1964 which would be about 50 percent present rate will be feasible though at far slower rate reduction than that contemplated in reftel. He does not, however, believe any reduction feasible for RTA or RTN. JUSMAG will transmit its detailed recommendations via own channels.

Unger
  1. Source: Department of State, Central Files, 792.5/3–1560. Confidential. Repeated to CINCPAC.↩
  2. In telegram 2330, March 4, the Department informed the Embassy of a proposal, on the basis of which the fiscal year 1961 Military Assistance Program had been presented to Congress, to cut POL support for the Thai military leading to complete termination after fiscal year 1963. Past POL support for Thailand had created a number of problems, including: “(a) difficulty of justifying U.S. financed imports of POL into Thailand simultaneously in both military and economic aid programs, (b) rationale for MAP financing of relatively small proportion total imports of POL into Thailand, and (c) difficulty in explaining why Thailand unable to add this relatively small requirement to its military budget.” (Ibid., 792.5/3–460)↩