(c) crown copyright Catalogue Reference:CAB/129/27 Image Reference:0029 J ( T H I S IGCTMENT IS THE P R O P E R T Y OP H I S BRITANNIC MAJESTY'S S E C R E T COPY NO. ikcj c . p . a : ) 11TH JUNE. - 236 GOVERNMENT) 10 1QL6 CABINET THE P O L I T I C A L Memorandum by the SITUATION Secretary of IN State BURMA for Foreign Affairs _ , S i n c e t h e e v e n t s d e s c r i b e d i n my memorandum ( C , P . ( h 8 ) 1 0 3 ) o f 8 t h A p r i l , 19I48, o n t h e s t r i k e s i t u a t i o n in Burma, the p o s i t i o n has s e r i o u s l y d e t e r i o r a t e d . The left-wing p a r t i e s which united to a t t a i n independence are f a l l i n g apart, and i t I s n o t i m p o s s i b l e t h a t - t h e p r e s e n t comparatively m o d e r a t e G o v e r n m e n t may f a i l t o h o l d t h e c o u n t r y together. 2. A r e c e n t s t a t e m e n t by T h a k i n N u , t h e P r i m e M i n i s t e r , t h a t h e i n t e n d s t o r e s i g n o n 2 0 t h J u l y and d e v o t e h i m s e l f to the l e a d e r s h i p o f the A n . t i - F a s c i s t P e o p l e ' s Freedom League ( A . i ? - . P . F . i i . ) , t h e c o a l i t i o n a t p r e s e n t i n p o w e r , i s no s u r p r i s e t h o u g h i t had b e e n h o p e d t h a t he m i g h t , i n v i e w o f the Communist t h r e a t , s t a y i n o f f i c e u n t i l the e l e c t i o n s i n M a r c h , 1.9k3* B u t h e h a s a c c o m p a n i e d i t by a s t a t e m e n t o f p o l i c y / c o m p l e t e l y a t v a r i a n c e w i t h t h e m o d e r a t e l i n e w h i c h he h a s h i t h e r t o p u r s u e d , and w h i c h h i s f i r m a t t i t u d e t o t h e C o m m u n i s t s o v e r t h e r e c e n t s t r i k e s made u s h o p e r e p r e s e n t e d his real sentiments. He p r o p o s e s t h e d e v e l o p m e n t o f relations w i t h S o v i e t R u s s i a and t h e c o u n t r i e s o f E a s t e r n E u r o p e , the nationalisation of "monopolising c a p i t a l i s t undertakings" (the q u e s t i o n o f c o m p e n s a t i o n t o be c o n s i d e r e d o n l y after n a t i o n a l i s a t i o n ) , s t a t e monopoly o f o i l f o r e i g n t r a d e , the t r a n s f e r t o Burma o f t h e Burma C u r r e n c y B o a r d ( n o w i n L o n d o n ) , " t h e r e f u s a l o f any f o r e i g n a i d o f a kind which w i l l compromise t h e p o l i t i c a l , e c o n o m i c and t h e s t r a t e g i c i n d e p e n d e n c e o f Burma" ( w h i c h o b v i o u s l y c a l l s i n q u e s t i o n the f u t u r e o f the B r i t i s h S e r v i c e M i s s i o n ) , the " d e m o c r a t i z a t i o n " o f the Army, t h e a d m i n i s t r a t i o n a n d t h e F r o n t i e r A r e a s ( w h i c h may i m p l y a n a t t a c k on B r i t i s h - t r a i n e d c i v i l s e r v a n t s ) , the a b o l i t i o n of p r i v a t e o w n e r s h i p o f l a n d , and t h e f o r m a t i o n o f a " l e a g u e for the propagation of Marxist d o c t r i n e . . . . t o r e a d , d i s c u s s and p r o p a g a t e t h e w r i t i n g s o f M a r x , E n g e l s , L e n i n , S t a l i n , Mao T s e - t u n g , T i t o , D i r n l t r o v and o t h e r a p o s t l e s o f M a r x i s m " . 3. T h i s quasi-Communist manifesto apparently represents a d e s p e r a t e a t t e m p t to s a v e the c o a l i t i o n by p u t t i n g f o r w a r d a programme s u f f i c i e n t l y d r a s t i c to a p p e a l t o the e x t r e m e left and p a r t i c u l a r l y t o t h e P . Y . A . ( t h e p o l i t i c a l h e i r s o f Aung S o n ' s " p r i v a t e a r m y " , o n w h o s e s e m i - m i l i t a r y s u p p o r t and i n f l u e n c e w i t h t h e Army the Government g r e a t l y r e l i e s ) . But i t i s r e p o r t e d t h a t t h e P . Y . A . h o v e r e j e c t e d t h e p r o g r a m m e and a r e c o n t e m p l a t i n g a d i r e c t u n d e r s t a n d i n g w i t h the Communists. If t h a t h a p p e n s , t h e l o y a l t y o f t h e Army w i l l be a f f e c t e d , and t h e r e may b e a l m o s t - c o m p l e t e c o n f u s i o n , f o r t h e C o m m u n i s t s , who h a v e f e w o r n o r e a l l y c a p a b l e l e a d e r s , w o u l d n o t be a b l e t o take over e f f e c t i v e power. ko I t seems l i k e l y t h a t at b e s t a s p l i t i n t h e P . Y . A . w i l l r e s u l t , t h e e x t r e m i s t s j o i n i n g t h e Communists and t h e others remaining loyal to the A.F.P.F.L. But in any e a s e t h e Government w i l l b e s e r i o u s l y weakened. And, in the absence o f a s t r o n g man t o t a k e c h a r g e , t h e n a t u r a l t e n d e n c y o f t h e p o l i t i c a l l y - m i n d e d Burmese t o i n t e r n e c i n e f i g h t i n g and i n t r i g u e wi I f e a r , continue unrestrained to the ultimate b e n e f i t of the C o m m u n i s t s , w h o , i f t h e y can o b t a i n f r o m Moscow t h e t r a i n i n g w h i c h t h e y a t p r e s e n t l a c k , o u g h t t e b e a b l e t o s e t up a C o m m u n i s t state before long. 5. In t h e meantime, the B r i t i s h - o w n e d Irrawaddy F l o t i l l a Company e n d o n e - t h i r d , o f t h e B r i t i s h t i m b e r i n t e r e s t s w e r e e x p r o p r i a t e d on 1 s t J u n e . D e s p i t e t h e A g r e e m e n t and t h e E x c h a n g e o f N o t e s o f 1 7 t h O c t o b e r , 19U7, w h i c h i m p l i e d t h a t d e v e l o p m e n t s a f f e c t i n g B r i t i s h i n t e r e s t s should be s u b j e c t t o discussion b e t w e e n t h e Burmese Government and o u r s e l v e s , no s e r i o u s attempt w a s m a d e t o r e a c h p r i o r a g r e e m e n t on t h e c o n d i t i o n s for compensation or f o r t h e t a k e - o v e r o f t h e s e two c o n c e r n s . 6. In v i e w of these developments I have suggested t o the M i n i s t e r o f D e f e n c e t h a t w e s h o u l d c o n s u l t o u r A m b a s s a d o r on t h e w i s d o m o f s u p p l y i n g a r m s t o Burma u n t i l t h e p o s i t i o n i s clearer. T h i s vie h a v e h i t h e r t o e n c o u r a g e d w i t h a v i e w t o a s s i s t i n g t h e B u r m e s e G o v e r n m e n t t o s t a n d up t o t h e C o m m u n i s t s . I am a l s o c o n s i d e r i n g w h e t h e r w e s h o u l d n o t r e v i e w o u r s u p p o r t o f Burma i n the international f i e l d . We h a v e s p o n s o r e d , h e r m e m b e r s h i p o f t h e U n i t e d N a t i o n s and. h a v e s u p p o r t e d h e r a p p l i c a t i o n f o r m e m b e r s h i p o f v a r i o u s i n t e r n a t i o n a l "bodies. We a l s o r e p r e s e n t h e r i n t e r e s t a b r o a d in a number o f c o u n t r i e s w h e r e she has no r e p r e s e n t a t i v e of h e r own. S h e i s n o w up f o r m e m b e r s h i p o f t h e P a r E a s t e r n Commission; a n d we h a v e h i t h e r t o c a n v a s s e d t h e o t h e r members f o r her admission. I am now a s k i n g H . M . A m b a s s a d o r i n W a s h i n g t o n t o d i s c u s s w i t h f r i e n d l y T o w e r s on t h e C o m m i s s i o n t h e desirability of going slow in t h i s matter. E.B. A Foreign Office, 1tth June, S.W.1. 19U8.