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

608. Your 740 rptd info CINCPAC/POLAD 241.2 In call on Parsons October 27 Thai Ambassador on FonOff instructions referred to démarche made by Acting Foreign Minister in Bangkok requesting us to give sympathetic consideration to releasing RTG from obligation to contribute baht funds for use USG in Thailand.3 Visutr said there was growing feeling in Thai governmental circles and public opinion RTG should allot larger share total budget to economic development and educational projects, stated RTG must take this feeling into account, and appealed for generous US gesture which would ease RTG financial problem at this time.

Parsons replied he understood RTG desire devote greater portion its revenues to economic and educational projects but expressed regret RTG had made such request, noting it customary for governments receiving military assistance from us to support local currency costs related thereto and willingness to do so usually considered here as indication their interest in continuing receive such assistance. He stated he was unable make substantive reply without having matter examined by appropriate government offices.

[Page 1149]

Department will advise as soon as review of Thai request completed.

Herter
  1. Source: Department of State, Central Files, 792.5–MSP/10–2660. Confidential. Drafted by Swezey; cleared by offices in the Department of State and by the Department of Defense; approved by Avery F. Peterson. Repeated to CINCPAC for POLAD.
  2. In telegram 740, October 26, Johnson recounted a recent conversation with Foreign Minister Thanat concerning a Thai request to be relieved of the obligation under Article VIII of the military assistance agreement of October 17, 1950 (3 UST (pt. 2) 2675) to contribute baht funds for the use of the U.S. Government in Thailand. (Department of State, Central Files, 792.5–MSP/10–2660)
  3. A memorandum of this conversation is ibid., 751J.00/10–2760.