790B.00/11–2851

Memorandum by the Special Assistant for Mutual Security Affairs (Merchant)1

top secret

When I was in London two weeks ago Julius Holmes,2 Jim Penfield3 and Arthur Ringwalt4 in the Embassy all brought up at one time [Page 317] or another the question of KMT troops in Burma. They knew a great deal about the situation and were relieved when I told them that they could accept as a fact that there is no U.S. governmental connection whatsoever with the operation. I gathered that General Bedell Smith had been through London recently and was somewhat more forthcoming with the British than he had been a few months ago with Kit Steele here. It was also quite plain that the Foreign Office had been very genuinely disturbed over the situation.

The following incident had been related some weeks ago by Rob Scott5 in the Foreign Office to Art Ringwalt. It seems that when they made the suggestion to us the Foreign Office genuinely thought that it would be a useful operation if their Ambassador in Bangkok and our Chargé d’Affaire both descended upon Phibun6 and gave their assurances of non-involvement. When the Department agreed to this joint or concerted determination they cabled appropriate instructions to their Ambassador. He replied cryptically to the effect that obviously they did not know what he knew or they would not have sent him the instruction. This puzzled the Foreign Office and they cabled the Ambassador to ask him to what he referred. He replied in effect that in the course of a call on Phibun some time before to discuss another matter, the Prime Minister had volunteered that he had been approached by a representative of the American Intelligence Agency and asked to provide certain facilities to support Li Mi, that he had readily agreed, and stated that he would help the Americans or anyone else to kill Communists. When the British Ambassador elevated his eyebrows Phibun is reported to have replied, “Why are you surprised? Aren’t you just as interested in killing Communists as I am, or as the Americans are?”

  1. Addressed to the Deputy Assistant Secretary of State for Far Eastern Affairs (Allison), Director of the Office of Philippine and Southeast Asian Affairs (Lacy), and to Kenneth C. Krentz of the Policy Planning Staff.
  2. Julius Holmes, Minister of the American Embassy at London.
  3. James K. Penfield, Counselor of the American Embassy at London.
  4. Arthur R. Ringwalt, First Secretary of title American Embassy at London.
  5. Robert H. Scott, Deputy Assistant Secretary of State in the British Foreign Office.
  6. The reference is to the Prime Minister of Thailand.