792.5 MAP/3–950

Memorandum by the Secretary of State to the President 1

top secret

Memorandum for the President

Subject: Allocation of Funds to Provide Military Assistance to Thailand and Indochina under Section 303 of the Mutual Defense Assistance Act

The Department of State and the Department of Defense have agreed that a program of military assistance for Thailand and Indochina should be undertaken for the purpose of providing military equipment to assist in maintaining the security and independence of these countries against communist aggression from without and subversive activities from within. (Annexes A and B, attached, give supporting background prepared by the Department of State.) In reaching this conclusion, the two Departments are aware that the major responsibility for attaining the objectives of the program rests with the recipient governments, and not with the United States. However, it is clear that supplemental military materiel assistance from the United States is required. The duration of such assistance, and the total cost thereof, is not now known. The National Security Council is presently considering this question, with a view to estimating the probable overall magnitude and duration of United States assistance to Southeast Asia.

The staffs of the two Departments have estimated that funds in the amount of $25 million for Thailand and Indochina are needed as initial installments for this purpose, this sum to be divided approximately $10 million for Thailand and $15 million for Indochina. The two Departments believe that for urgent political considerations military equipment should be made available as quickly as possible and propose that the funds mentioned above be provided under the authority of Section 303 of the Mutual Defense Assistance Act of 1949.

While the general objectives of the proposed programs of military assistance have been jointly agreed upon between the two Departments, the exact details of the programs have not as yet been formulated by the staffs of the interested agencies. It is accordingly requested that [Page 41] the President at this time approve military assistance to Thailand and to Indochina, and that $25 million be reserved for this purpose under Section 303 of the Mutual Defense Assistance Act.2 It is proposed that this assistance be administered by the Secretary of State under the provisions of Executive Order No. 10999 [10099] of January 27, 1950.3

In addition to the aforementioned programs for military assistance, the Secretary of Defense recommended to you on February 15, 1950, the allocation of $6,524,721 to accomplish the improvement of airfields in Japan.

The Departments of State and Defense are also considering under Section 303 of Public Law 329 a proposed program of supplementary military assistance to Korea in the approximate amount of $9,800,000 which is additional to the program authorized as a part of the regular Mutual Defense Assistance Program. This latter sum is needed to provide a further strengthening of the security of that republic against communist encroachment, both internal and external.

The Department of State is also developing the details of a program to provide assistance to Burma to hasten the development on the part of the Burmese of a national capability for maintaining their independence. Tentative plans for use of Section 303 funds in this connection include a project to furnish ten patrol vessels for use on the Irrawaddy River to enable the Burmese Government to keep that river clear of rebel forces which have hitherto prevented a free exchange of goods between the northern and southern parts of the country. The cost of this proposed project is estimated at $3.5 million. In addition, other tentative plans are under consideration to provide assistance to Burma. These are not yet developed to a point where it is possible to give an estimate of their total cost.

In summary, the aforementioned programs for Thailand and Indochina, for which authorization is requested herein, together with the initial allocation of $5 million which you have already approved to provide equipment for the Indonesian constabulary, will result in a total authorization, when approved, of $30 million. The above-mentioned [Page 42] projects for Japan, Korea and Burma will, if approved, be in excess of $20 million.

Dean Acheson

Annex A

secret

Paper Prepared in the Department of State

Military Assistance to Thailand

We are recommending immediate military aid to Thailand because of the serious internal communist threat to it brought about by communists within the nation who are being strengthened daily by events favorable to communism occurring on all of Thailand’s borders.

The Thai Government has publicly declared itself in opposition to communism and has sought to align the Thai nation with those nations opposing the advances of communism. Military assistance is needed by Thailand to enable it to oppose communist advances.

Externally, Chinese and Vietnamese communist-led forces are in control of the areas to the north and east of Thailand. It is believed that the Vietnamese communist leader, Ho Chi Minh, is being materially strengthened by the Communist Chinese. Chinese communist forces have infiltrated northeastern Burma on the northern frontier of Thailand and are threatening the security of that area. Burma itself is kept in a turmoil by communist forces which are presently in action along the western border of Thailand. In Malaya on the south, there are strong Chinese communist-led guerrilla bands which are presently in revolt against the British authorities and whose principal sphere of action lies along the Malaya-Thailand border. As communist forces in neighboring parts of Asia are victorious, it seems certain that these forces surrounding Thailand will be able to bring greater pressure to bear, especially through the communists already in Thailand, to align Thailand with the communists.

Internally, Thailand is threatened by Chinese communists who are attempting to gain control of the more than three million Chinese there. The Chinese within the nation are strongly armed and are unfriendly to the declared intentions of the Thai Government. Some Thai political elements are showing evidence of preparing to swing over to the communist side if the pressure should become too great. It is clearly apparent that unless Thailand is given military assistance it cannot hold out against communist pressure. A sample of such pressure [Page 43] is the strong protest reportedly made by the Chinese Communist Vice Foreign Minister, Li Ken Nung, to the Thai Government demanding the end of oppression of Chinese in Thailand and requiring the immediate release of Chinese in prison with guarantees of no further mistreatment.

If Thailand should be lost to the communists, then it would be unlikely that Malaya could be held. This would mean that from Korea to India, there would be no place on the Asian mainland where the United States would have an open friend and ally. Furthermore, there would be no place on the Asian mainland in that area where U.S. policy could be freely expressed as at present. In addition, the United States would lose its last independent listening post in the area. Aside from these political considerations, it is probable that the United States would be unable to secure such strategic materials as tungsten, tin, and rubber in their present quantities. It is clear, therefore, that it is of considerable political and economic importance to the United States to support Thailand with military aid in opposition to the forces of communism.

Annex B

top secret

Paper Prepared in the Department of State

Military Assistance for Indochina

Immediate military assistance for Indochina is recommended because of the communist threat to the newly created States of Vietnam, Laos and Cambodia, resulting from the existence of an obviously Russian-sponsored communist anti-government force under Ho Chi Minh, which is in conflict with the legal government for control of Vietnam.

On February 7, 1950, the United States extended diplomatic recognition to Vietnam, Laos and Cambodia, This action followed British recognition and many other anti-communist nations of the world are expected to take similar action. Since USSR, Communist China and several other Soviet satellites have recognized the communist movement of Ho Chi Minh as the legal government of Vietnam, the issue becomes more clearly defined as an anti-communist versus communist effort.

The whole of Southeast Asia is in danger of falling under communist domination. The countries in the area of Southeast Asia are not at present in a position to form a regional organization for self-defense, [Page 44] nor are they capable of defending themselves against military aggression without the aid of the great powers. Despite their lack of military strength, however, there is a will on the part of the legal governments of Indochina toward nationalism and a will to resist whatever aims at destroying that nationalism.

The French are irrevocably committed in Indochina and are supporting the three states as a move aimed at achieving non-communist political stability. The failure of the French-sponsored governments of the three states therefore would mean the communization of Indochina under Ho Chi Minh, a Moscow-trained communist. The choice confronting the United States is to support the legal governments in Indochina or to face the extension of communism over the remainder of the continental area of Southeast Asia and possibly farther westward. We would then be obligated to make staggering investments in that part of Southeast Asia remaining outside of communist domination or to withdraw to a much contracted Pacific line of defense.

France needs aid in its protection of the legally constituted anticommunist States in Indochina. We know from the complex circumstances involved that the French will make every possible effort to prevent the victory of communism in Indochina and consequently in Southeast Asia. We would, accordingly, be backing a determined protagonist. The French military leaders are soberly convinced that, in the absence of a mass invasion from Red China, the French could be successful in their support of the anti-communist government in Indochina. French, native and colonial troops are presently engaged in military operations in Indochina aimed at defying the southward expansion of communism from Red China and of destroying its power in Indochina. The military aid which it is proposed to furnish in support of the anti-communist governments of Indochina would be tailored to meet materiel deficiencies toward which the United States can make an effective contribution.

The urgency of the need for immediate military assistance is reflected by the ease with which communist-supplied arms and even troops may now pass across the China-Tonkin border. With this assistance, Ho Chi Minh’s forces present a more immediate and dangerous threat to the existence of non-communist governments in Indochina. By taking advantage of an already existing guerrilla army within Indochina, the potential invader may avoid the consequences of border violations but still actively advance the communist cause. It is to help contain this pseudo-nationalist form of invasion that immediate aid is recommended under the provisions of Section 303 of the Mutual Defense Assistance Act of 1949.

  1. Concurred in by the Secretary of Defense on March 6.
  2. On March 10, President Truman approved the request. His letter to Secretary Acheson read as follows:

    “I have considered your memorandum of March 9, 1950, requesting that $25,000,000 be reserved to provide military assistance to Thailand and Indo-China from funds available under section 303 of the Mutual Defense Assistance Act of 1949.

    “I approve the principle of furnishing military aid to these nations, and have initially reserved $25,000,000 for this purpose. It is my desire that when definite programs of assistance have been developed, the request for an allocation of funds be submitted to me through the Director of the Bureau of the Budget.” (792.56/3–1050)

  3. Executive Order No. 10099 provided for the administration of the Mutual Defense Assistance Act of 1949 (15 Fed. Reg. 499).