790.5 MAP/2–350
Memorandum by the Acting Assistant Secretary of State for Far Eastern Affairs (Merchant) to the Secretary of State and the Under Secretary of State (Webb)1
Subject: Status of Activities Under Section 303 of the Mutual Defense Assistance Act
1. General
On February 1, 1950 the Department received a letter from Mr. Johnson of the Department of Defense transmitting a copy of recommendations which the Joint Chiefs of Staff submitted to him on January 20 regarding the emergency fund of $75 million for the general area of China. Mr. Johnson stated that he was submitting these recommendations, without taking a position on them, in order that the military point of view may be considered in the joint planning of this fund. In summary the JCS believes that, from a military point of view, a program utilizing the $75 million is desirable and is entirely [Page 9] feasible. They recommend that a program of overt assistance and covert operations in the general area of China should be initiated as early as possible, such program to be conducted concurrently in the following countries with emphasis in the order listed: Indo-China, $15 million; Indonesia, $5 million; and Thailand, $10 million. They further recommend a contingency reserve of $45 million with a suggested tentative allocation of $5 million for Malaya, $10 million for Burma, and $30 million for … operations in China (including Taiwan and Tibet). The Department’s comments are now being prepared.
In collaboration with Mr. Humelsine2 (A), procedures and relationships to carry out the State Department’s responsibilities are being clarified. In accordance with Mr. Rusk’s suggestion, steps are being taken to obtain one officer to act full time on following up the details of projects under Section 303.
2. Police Equipment for Indonesian Constabulary
The President approved on January 9, 1950 a proposal to reserve $5 million to equip the Indonesian constabulary as agreed to between the Departments of State and Defense to maintain the internal security of that country against Communist encroachment. A definitive program of aid is now being developed by the Department of Defense based on the specific request which was received from the Indonesian Government on January 27, 1950.3
3. Military Assistance to Thailand
A request was received from the Thai Government on January 5, 1950 for arms assistance, under the MDA Act, to meet the requirements of the Royal Thai Armed Forces. This note, which was transmitted by S/MDA on January 20 to Defense, withdrew the earlier request of November 18, 1948 for the loan of arms and equipment for five battalions of Thai troops stationed along the Thai-Malayan frontier.4 A proposal has also been received from Ambassador Stanton5 that military aid of approximately $15 million be provided to Thailand. This document was also transmitted at the same time to the Department of Defense for their information in preparing plans for military aid to Thailand and to obtain their technical advice on the proposals in the light of the security interests of the United States.
[Page 10]4. Military Assistance to Indo-China
An agreed memorandum setting forth the political considerations underlying the extension of military assistance to Bao Dai and the French in Indo-China was completed in anticipation of French ratification of the March 8 Agreements according autonomous status to Vietnam, Laos and Cambodia. The President of France signed the ratification instruments on February 2.6 Arrangements were made with Mr. Bohlen7 for discussion with the French authorities at Paris of the character and timing of military assistance to Nationalist and French forces in Indo-China.
5. River Patrol Equipment for Burma
Preliminary informal discussions are in process with the Department of Defense on the technical aspects of a proposal for the provision of river patrol equipment for Burma under Section 303 for the purpose of strengthening the Government in Burma to make it capable of putting down internal revolt and of resisting external Communist pressures. A paper on the political considerations was transmitted to the Department of Defense on January 17.8
6. Technical Assistance Projects
An agricultural technical assistance project to materially improve the food situation with respect to the growing, storage, and transportation of rice in the Far East which has been developed in preliminary form by the Department of Agriculture is under consideration by the economic and political offices at the present time. The estimated cost is between $5 million and $9 million, the larger figure depending on whether India, Pakistan, and Afghanistan are included. The inclusion of these latter three countries was proposed by Mr. McGhee9 on January 17.
7. FE Mission to Southeast Asia on Technical Assistance and Economic Activities
Pursuant to the approval by Mr. Webb on January 31, plans are proceeding to send out a small mission to Southeast Asian countries to determine by spot surveys and discussions with the U.S. Missions the types of projects most immediately needed and feasible for which [Page 11] Section 303 funds might be used. Mr. Robert Allen Griffin10 has been suggested to head up the mission. He will be in today for discussion and decision on his acceptance.
- Transmitted through Dean Rusk, Deputy Under Secretary of State for Political Affairs.↩
- Carlisle H. Humelsine, Deputy Assistant Secretary of State for Administration.↩
- The specific request is not printed, but, for documentation on this subject, see pp. 964 ff.↩
- None of the documents mentioned in this paragraph is printed.↩
- Edwin F. Stanton, Ambassador in Thailand.↩
- The “agreed memorandum” has not been identified in the files of the Department of State. However, for documentation on French ratification of the March 8, 1949 Agreements, United States recognition of the Associated States, and the beginnings of the United States military assistance program in Indochina, see pp. 690 ff.↩
- Charles E. Bohlen, Minister in the Embassy in France.↩
- Not printed.↩
- George C. McGhee, Assistant Secretary of State for Near Eastern, South, Asian, and African Affairs.↩
- Publisher; Deputy Chief of the China Mission of the Economic Cooperation Administration, 1948–1949.↩