145 Cranborne to Commonwealth Government

Cablegram D1306 LONDON, 26 July 1945, 10.27 p.m.

SECRET

My telegram of to-day D. No. 1304 [1] Siam.

Following are draft conditions for acceptance by Siam. Begins- His Majesty's Government in the United Kingdom have already made it clear that their attitude towards Siam will depend in the first place on measures which Siam takes to contribute towards the expulsion of the Japanese from Siamese territory and towards the ultimate defeat of Japan and in the second place on her readiness (a) To make restitution to His Majesty's Government and their Allies for injury done to them in consequence of Siam's association with Japan, and (b) To ensure security and good neighbourly relations for the future.

The particular steps which His Majesty's Government would expect a Siamese liberation Government to take as a condition of recognising it as the Government of Siam and of collaborating with it are as follows- A. Measures of Repudiation 1. Issue orders for cessation of all hostilities against the forces of the Allies.

2. Repudiate the declaration of war made on Great Britain (and United States) on 25th January, 1942 and all measures pursuant to that declaration which may operate to the prejudice of Great Britain and her Allies.

3. Repudiate alliance entered into by Siam with Japan on 21st December, 1941 and all other treaties pacts or agreements concluded between Siam and Japan.

4. Renounce all territory acquired by Siam later than 11th December, 1940 including all territory which was purported to be ceded by the Vichy Government on 9th May, 1941. [2]

5. Declare war on Japan.

1. Take the necessary legislative and administrative measures to give effect to Section A above including in particular- (a) Dissolve any military or political organisation conducting propaganda hostile to the United Nations.

(b) Hand over to the Allied Military authorities all vessels belonging to the United Nations which are in Siamese ports.

(c) Carry out such measures of disarmament and demobilisation as may be prescribed by the Allies.

(d) Repeal all legislative and administrative measures relating to the annexation or incorporation in Siam of territories acquired later than 11th December, 1940.

(e) Withdraw as may be required by competent civil or military authority all Siamese military personnel from all Allied territories annexed by or incorporated in Siam after 11th December, 1940 and all Siamese officials and nationals who entered these territories after their annexation by [or] incorporation in Siam.

(f) Restore all property taken away from these territories. This would include currency except to the extent to which it could be established that fair value had been given in exchange.

(g) Compensate loss or damage to property rights and interests in those territories arising out of the occupation of these territories by Siam.

(h) Redeem in sterling out of former sterling reserves Siamese notes collected by the British authorities in British territory occupied by Siam since 1942.

2. Release all Allied Prisoners of War and internees held in Siam or in territories annexed by or incorporated in Siam after 11th December, 1940 and at Siamese expense provide them with adequate food clothing medical and hygienic services and transportation in consultation with the Allied military authorities.

3. Assume responsibility for safeguarding maintaining and restoring unimpaired British and Allied property rights and interests of all kinds in Siam and for payment of compensation for losses or damage sustained. Term property rights and interest to include inter alia, official property of His Majesty's Government in the United Kingdom, property whose ownership has been transferred since the outbreak of war, pensions granted to British nationals, stocks of tin teak and other commodities, shipping and wharves and tin teak and other leases and concessions granted to British firms and individuals prior to 7th December, 1941 and still valid at that date.

4. Sequestrate and reinstate British and Allied banking and commercial concerns.

5. Accept liability with the addition of interest at an appropriate percentage in respect of payments in arrears for service of loans and for payment of pensions since the date when regular payments ceased.

C. Measures Against Japan 1. Carry out such preoccupational activities as the Allied military authority may require.

2. Disarm Japanese forces in Siam and hand them over to the Allies as prisoners of War.

3. Intern all Japanese (and other enemy) nationals and hold them at the disposal of the Allies.

4. Seize and deliver to designated Allied military authority all war material belonging to the Japanese including Naval and merchant vessels of all kinds, aircraft, weapons, ammunition, motor and other transport, military stores including aviation and other petrols and fuels, stocks of food and clothing, wireless equipment and any other property whatsoever of Japanese Armed Forces.

5. Prohibit trading with the enemy.

6. Hold all Japanese (and other enemy) property at the disposal of the Allies.

7. Co-operate in the apprehension and trial of persons accused of war crimes.

8. Hand over to the Allied military authority all renegades of Allied nationality.

D. Facilities to be Granted 1. Maintain and make available to the Allied military authority such of Siamese Naval, land and air forces with their ports, airfields establishments, equipment, communications, weapons and stores of all kinds as may be specified.

2. Place at the disposal of the Allied military authority ports and free traffic facilities in and over Siamese territory as required by operations.

3. Provide free of cost all such supplies and services and all Siamese currency that may be required by the Allied military authority and pay cost of production of any Siamese currency issued by the Allied military authority for any purpose in Siam.

4. Arrange in accordance with the wishes of the Allied Military Authorities for Press and other censorship and control over radio and telecommunication installations or other forms of inter communciation.

5. Undertake civil administration subject to such intructions as may be issued by the Allied Military authority of those areas of Siam not placed under Allied military administration in order to meet requirements of operations against Japanese.

6. In case of need arrange for facilities for recruitment of local labour and for utilisation in Siamese territory of industrial and transport enterprises and of means of communication power stations public utility enterprises and other facilities, stocks of fuel and other materials in accordance with requirements and instructions of A.M.A.

7. Make Siamese merchant vessels whether in Siamese or foreign waters subject to operation control of the Allies for use as may be required in the general interests of the Allies.

8. Negotiate an agreement granting judicial and other immunities for the Allied Forces in Siam.

9. Agree to the setting up of a military Mission to be appointed by appropriate A.M.A. to advise on the organisation, training and equipment of the Siamese Armed Forces.

10. Control banks and business foreign exchange, foreign commercial and financial transactions and regulate trade and production as required by the Allies.

11. Undertake to prohibit, except in accordance with directions of the Combined Boards acting on behalf of the Allies or of such other similar authority which replaces these Boards any exports of rice, tin, rubber and teak during the period of the war against Japan and for such time after that as may seem to the authority concerned necessary in economic circumstances prevailing at the time.

12. (a) Make available free of cost at Bangkok as quickly as may be compatible with retention of supples adequate for the Siamese internal needs quantity still to be determined, tons of sound white rice or if so agreed by the authorities appointed by the Allies for the purpose equivalent quantity of paddy.

(b) For so long as in opinion of the Combined Boards or other authority acting on behalf of the Allies a world shortage of rice continues take all possible measures to promote and to maintain the maximum rice production and make available to an Allied rice unit resulting surpluses at prices to be fixed in agreement with the Allied Rice Unit having regard to controlled prices of rice in other Asiatic producing areas.

(c) Conclude detailed agreement with the Allied Rice Unit regarding measures to be taken to give effect to (a) and (b) above. Such agreement to provide- (a) For Allies to take whatever measures may be required for the fulfilment of these obligations until the Siamese Government are themselves in view of Allies in a position to ensure this.

(b) For continued co-operation thereafter of Siamese Government with Rice Unit in fulfilment of any obligations already incurred.

13. Agree to frame Siamese currency policy (including the rate of exchange to be fixed at the outset which may include different rates for BAHTS of prewar issue and BAHTS printed by the Japanese in accordance with the advice of Allied representatives with a view to facilitating the maximum production of rice and of other commodities in short supply and to obviate economic disturbance.

14. Arrange withdrawal and redemption in Siamese currency at par within a specified time limit of all holdings in Siamese territory of currency issued by the Allies during military operations if it shall have been found necessary to use such an Allied currency.

15. Agree to pay in full for all relief supplies such payment to be made in gold until all obligations to supply rice free of charge as Siamese contribution to the United Nations requirements have been discharged and thereafter out of the proceeds of exports of rice and other products.

E. Measures for Post War Strategic Co-operation 1. Recognise that the course of events in the war with Japan demonstrate the importance of Siam to the defence of Burma, Malaya and Indo-China and ultimately to the protection of British strategic interests in the Indian Ocean and the South West Pacific.

2. Agree until such time as she is admitted to membership of the United Nations to carry out such measures for the preservation of international peace and security as the United Nations organisation require.

3. Undertake that no canal linking the Indian Ocean and the Gulf of Siam shall be cut across Siamese territory without prior concurrence of His Majesty's Government in the United Kingdom.

F. Measures for Post War Economic Co-operation 1. Agree to take all possible measures to re-establish import and export trade between Siam on the one hand and neighbouring British territories on the other and to [3] and maintain a good neighbourly policy in regard to coastal shipping.

2. Undertake to negotiate as soon as practicable a new treaty of Commerce and Navigation and Consular and establishment of a convention based on the principles in the following paragraph.

3. Pending the conclusion of the Treaty and Convention referred to in paragraph 2 above. Undertake to observe provisions of Treaty of Commerce and Navigation signed at Bangkok on 23rd November, 1937 and in addition not to enforce measures excluding British commercial or industrial interests or British professional men from participation in Siamese economy and trade (subject to such exceptions if any as may be agreed between His Majesty's Government in the United Kingdom and the Siamese Government) or requiring them to maintain stocks or reserves in excess of normal commercial shipping industrial or business practice provided that if the Treaty and Convention have not been concluded within a period of three years this undertaking shall lapse unless it is prolonged by agreement.

4. Undertake to negotiate a civil aviation agreement in respect of all British (including Commonwealth) civil air services not less favourable than agreement of 1937 with respect to the Imperial Airways.

5. Undertake to participate in any international arrangements regarding tin and rubber. [4]

[AA : A1838/2, 453/10/1/2]

1 On file AA : A1066, H45/1014/2. It emphasised that the conditions set out in this document were entirely provisional and requested that any comments by Dominion Governments be made within a week.

2 See Document 144, note 8.

3 A sign here indicates 'mutilated'.

4 Part of paragraph D5, apparently repeated here in error, has been omitted.

[B.] Measures of readjustment and restitution