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ANNEX

DEFENCE AGREEMENT SIGNED ON 29TH AUGUST, 1947, IN RANGOON

General

THIS Defence Agreement between the Government of Burma an the United Kingdom Government has been freely concluded between the two countries and is without prejudice to any Military alliance which may be made in the future between the Government of Burma and the United Kingdom Government. It has been negotiated in relation to the treaty of transfer, the provisions of which in regard to the international obligations of either party, the settlement of disputes and to similar matters will apply in respect of this Agreement subject to the provisions of the treaty.

Evacuation of British Troops

2. Subject to the provisions of this Agreement, the United Kingdom Government will move all United Kingdom troops out of Burma as soon as possible after the date of transfer of power. The margin of time necessary to effect this movement will be a matter for adjustment between the two Governments. The Government of Burma agree to afford all possible help and protection to His Majesty's Forces in the course of this evacuation,

Financial Concessions by the United Kingdom Government

3. The United Kingdom Government agree—

(a) to forgo the financial claims made upon the Government of Burma in the letter to the Finance and Revenue Department of 22nd February, 1947, in respect of Defence charges in Burma subse- quent to 1st April, 1947;

(b) to make no charge in respect of the transfer of initial equipment

for the Burma Army up to the scales agreed;

(c) to make no charge in respect of the transfer of initial maintenance

reserves for the Burma Army up to the agreed scales;

(d) to transfer to the Government of Burma free of cost fixed assets of the Army and the Royal Air Force remaining in Burma at the date of the transfer of power;

provided that the transfers agreed to in clauses (b), (c) and (d) above shall explicitly exclude all Lend/Lease material.

United Kingdom Service Mission

4. In accordance with the wishes of the Government of Burma the United Kingdom Government agree―

(i) to provide a Naval, Military and Air Force Mission to Burma; (ii) that the Mission will, provided volunteers are available, include

instructional and other staff for service with the Burma forces;

(iii) to provide training facilities in His Majesty's establishments for

personnel of the Burma forces.

The functions and composition of the Mission and of instructional and other staff, the terins and conditions of service of United Kingdom personnel and particulars of training facilities to be provided will fall to be negotiated separately between the two Governments.

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As a special arrangement to meet the circumstances giving rise to this Agreement, the United Kingdom Governinent are prepared to waive the cost of the Mission, excluding instructional and other staff under (ii) above, and the cost of training facilities in His Majesty's establishments for a period of three years from the transfer of power. The cost, other than Home effective and non-effective charges, of instructional and other staff for service with the Burn forces will be borne by the Burma Government.

Naval

5. The United Kingdom Government agree to transfer to the Govern- ment of Burma free of cost the Naval vessels set out in the Appendix to this Agreement.

Air Provisions

6. Subject to the provisions of this Agreement the United Kingdom Government agree

(a) to contribute such portion of the cost of the maintenance of Minga- ladon Airfield including the cost of technical personnel as may be agreed between the two Governments;

(b) to provide necessary technical personnel for the maintenance and operation of this airfield at appropriate standards to be agreed between the two Governments for such period, not exceeding one year, as will enable the Government of Burma to assume this responsibility;

(c) to contribute for a period of three years a sum not exceeding £40,000 annually to the maintenance at standards to be agreed between the two Governments of the landing grounds at Akyab and Mergui.

Supply of War Material

7. Having regard to the friendly relations signified by the conclusion of this Agreement, the United Kingdom Government agree to give all reasonable facilities for purchase by the Government of Burma of war material.

Undertaking of the Government of Burma

8. The Government of Burma agree—

(a) to receive a Naval, Military and Air Force Mission from the United Kingdom Government and not from any Government outside the British Commonwealth;

(b) that, in view of the close association between His Majesty's Navy and the Burma Naval Forces and in accordance with customary peace-time practice with other friendly Powers, ships of either navy shall have the right of entry into the ports of the other party upon notification direct between their respective naval authorities on the spot;

(c) that, in view of the friendly association between the air forces of the two parties, military aircraft of either party shall have the right in accordance with customary peace-time practice upon notification direct between the respective air authorities, to fly over the terri- tories of the other, and to enjoy staging facilities at airfields to be prescribed from time to time by agreement between the two Governments, including those referred to in Article 6;

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