508. Telegram From the Embassy in Thailand to the Department of State1
1557. There follows text of letter from Ambassador on economic aid handed to Marshal Sarit today:
“Knowing of your deep interest in resources available for economic development of Thailand, I have kept appropriate Thai officials informed of financial assistance provided by my govt. Recently I was able to inform these officials of grant this fiscal year (July 1, 1958–June 30, 1959) of $4 million for technical assistance. Now I am pleased to advise you that my govt has provided an additional $20 million of Defense Support funds this FY as a grant for economic development assistance. These grant funds are, of course, in addition to US military assistance to Thailand. This assures that Thailand and US will maintain present level of activity in this area and move forward with many projects so useful in economic development of your country.
US is giving increased emphasis to use of DLF resources for assisting in economic growth of free nations. Nevertheless, grant assistance to Thailand under TC and Defense Support continues this FY at same level as last year.
In addition to this, I have already transmitted to MEA DLF’s commitment to finance, on dollar loan repayable in baht, $20 million foreign exchange costs of modern electric distribution system for Bangkok. Likewise I have communicated to MEA commitment of Ex-Im Bank [Page 1062] to provide $14 million loan for dollar costs of modern 75,000 KW thermal electric plant for Bangkok. Signature of these loans now only awaits approval of loan agreements by MEA and MFA.
In recognition of Thailand’s regional importance in SEA, as you know, my govt has, in addition, appropriated $17 million for constructing throughout Thailand telecommunications system which will also link Thailand with similar systems in Laos and Viet-Nam. Of this amount, $10 million is grant and $7 million is baht repayable dollar loan. Both $1 million SEATO skilled labor program and Chu-lalalongkorn Graduate School of Engineering to which US is contributing $400,000 are to be established in Thailand. Moreover, Thailand will share generously in benefits from $2 million US contribution to Mekong River survey, regional English training program costing $1.5 million and $560,000 oceanographic survey of waters joining Thailand with RVN.
I hope that this will be helpful in carrying out plans of Thailand’s economic development.”
- Source: Department of State, Central Files, 792.5/12–2258. Unclassified; Priority.↩