795.00/8–2951
Memorandum of Conversation, by the Assistant Secretary of State for Far Eastern Affairs (Rusk)1
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With regard to Indochina and particularly the Singapore Conference,2 the Ambassador pointed out that were Indochina to fall the results would be disastrous. Not only would our Pacific security Pacts be worthless but also Japanese industry could not survive the loss of Asiatic mainland markets and sources of raw material. This was a common problem and must be approached on that basis for in addition to the foregoing it also had direct bearing on European rearmament.
I inquired whether there was detailed minutes of the Singapore meetings in that although I did not want to raise this point I was fearful that the French might be considering the recommendations in a perhaps too sweeping form.
The Ambassador replied that he did not know the status of the minutes or recommendations in Singapore but he did know that not only did General de Lattre take them at their full value but also the Associated States of Indochina regarded them as most important. Tonkin is the key to all of Southeast Asia and were it to fall to the communists the area as a whole would be lost. The Ambassador alluded to his talks with the Secretary who had told him that we were actively studying the Singapore recommendations and inquired if I could give him any information on this point. I said that I knew the Department of Defense was pursuing this matter actively and that preparations were being made to discuss it with General de Lattre, which we were looking forward to. Unfortunately, I would be away at that time but Mr. Merchant would represent FE.
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