Office of the Historian

893.01/9–1549

Memorandum by the Chief of the Division of Southeast Asian Affairs (Reed) to the Director of the Office of Far Eastern Affairs (Butterworth)

[Washington,] September 15, 1949.

There are attached two telegrams (No. 254, September 7 and No. 263, September 1351) which indicate that the large Chinese population [Page 86] in Malaya and commercial interests will figure largely in the UK approach to the question of recognition of the Chinese Communist Government. It seems that British officials and Chinese in Malaya believe that trade with Communist China will depend upon de jure recognition of a Chinese Communist Government.

It seems to me that this is not necessarily so as there have been many occasions in the past when trade relations have been carried on while no formal diplomatic relations existed. In fact our own historic relations with Russia provide an excellent example of such a situation.

From the point of view of Southeast Asian countries it would in fact be preferable for some time to come to carry on trade relations with China without formal diplomatic relations. This would be especially true of Thailand and Malaya where the large Chinese elements provide a ready base of operations for Chinese Communist activities.

You doubtless recall how reluctantly Thailand established diplomatic relations with China in 1942 for the first time in modern history. Up to that time trade had been as brisk as either side could desire. Thailand would doubtless welcome now an extended interim of no diplomatic relations with China. However, if both the US and UK recognize a Chinese Communist Government, Thailand, which generally follows our lead, may feel constrained to do likewise even though endangering its national security. The longer we can delay an act of recognition, the longer we can probably defer a sharp issue over communism in Thailand and Malaya.

This thought is being put before you not because it is original but in the hope that you might keep it in mind when considering the pros and cons of recognizing a Chinese Communist Government.

  1. Latter not printed.↩