396.1–LO/5–2250

Memorandum by the Director of the Office of Philippine and Southeast Asian Affairs (Lacy) to the Assistant Secretary of State for Far Eastern Affairs (Rusk)

top secret

Subject: Status of Problems Considered at the Foreign Ministers’ Meetings.1

Out of the discussions held both bilaterally and trilaterally in Paris and London the following problems arose:

1. Paris bilateral talks with the French2 In discussing the situation in Indochina with Mr. Schuman the Secretary reiterated that American aid would not become a substitute for the basic French responsibility for that area. The Secretary indicated to Mr. Schuman that approximately $20 million would be made available by the United States for both economic and military aid during fiscal year 1950.

2. Trilateral Talks in London.

(a) Problem: In paragraphs 7 and 8 of Minute No. 1, agreed to by the United States and United Kingdom it was stated that the British and French have direct responsibility in Southeast Asia which make its security of even greater concern to them than to the United States. The United States has taken and will continue to take every [Page 95] diplomatic action which appears practicable to defend Southeast Asia against further Communist encroachment. The United States is also prepared to accord military aid within its capabilities and is examining the possibility of according economic aid to Indochina and certain other parts of Southeast Asia.

Action: The United States plans for both economic and military assistance are well advanced. $13 million has been allocated by the President under 303 for military assistance to Indonesia and Indochina. Supply action has begun on military aid for Indochina and the first shipment may take place within thirty days, depending upon French clarification of certain details. The President has approved $750 thousand for economic assistance to Indochina and the Chief of the ECA Mission will arrive at Saigon on May 24. The Governments of the three states will be notified on that date of the establishment of the ECA Mission to Indochina.

(b) Problem: In sub-paragraph (a) of Minute No. 2 which was agreed to by all three delegations it was recognized that there is a considerable amount of arms smuggling taking place from Thailand which aids the Vietminh forces. It was suggested that the French, the United States and the United Kingdom Ambassadors in Bangkok should be instructed to meet together to discuss ways and means of influencing the Thai Government to exercise more strict control over the smuggling of arms into and out of Thailand. Likewise, it was recommended that the Philippine Government be approached by the United States Government on the same subject.

Action: The Department on May 22 instructed the United States Ambassador at Bangkok of the suggestion outlined above and directed him in conjunction with the Ambassadors of the United Kingdom and France to investigate means of controlling the arms traffic from Thailand into Indochina. The Department has also instructed the United States Ambassador at Manila to approach the Philippine Government along the same lines to prevent further arms traffic from the Philippines.

(c) Problem: Under Minute No. 2 which was agreed to by all three delegations it was suggested that the three Governments should seek to coordinate their policy on exposing and combatting Communist propaganda through consultation between their appropriate authorities in the area.

Action: The United States Legation at Saigon has been instructed to coordinate USIE efforts with the French authorities and with the State governments in order to publicize captured documents and expose the aims and designs of the Communists in Indochina.

3. Conclusion:

Arising out of the foregoing agreements the United States is committed to extend political, economic and military assistance to Southeast [Page 96] Asia. No specific sums of money nor timetable have been promised. It is important to note that both the French and the British Governments are on record that the security of Southeast Asia is primarily their responsibility and that the United States assistance will be supplementary only. United States military assistance to Indochina specifically has been delayed because of confusing French requests and lack of clarity in French planning. The United States is prepared to act quickly if the details of military assistance are worked out between French authorities at Paris and the United States military aid group Paris and the French and Vietnamese authorities in Indochina. Economic assistance to Indochina should be able to develop rapidly if the ECA Mission produces a firm program which will be suitable for supporting a request for additional funds.

  1. The Foreign Ministers of the United States, the United Kingdom, and France met in London from May 11 to May 13, 1950, to discuss problems of common concern. These conversations were preceded by preliminary discussions which commenced on May 1. In addition to the tripartite sessions, United States officials participated in bilateral meetings with British and French Representatives. Aspects of the situation in the East Asian-Pacific area received consideration at various sessions. Documentation on the London Foreign Ministers Meeting and related discussions is scheduled for publication in volume iii .
  2. Regarding the Acheson-Schuman discussions in Paris on May 8, see editorial note, p. 812.