JCS files

Note to the National Security Council by the Executive Secretary (Lay)

top secret
NSC 5429

Review of U.S. Policy in the Far East

References:

  • A. NSC 125/2 and NSC 125/6; NSC 146/2; NSC 166/1;1 NSC 170/1;2 NSC 5405;3 NSC 5409;4 NSC 5413/15
  • B. NSC Action No. 2566
  • C. NSC Action Nos. 1086–b, 1104–b and 11127
  • D. NSC 54168
  • E. Progress Report, dated July 29, 1954 by OCB on NSC 54099
  • F. Memo for NSC from Executive Secretary, subject, “United States Objectives and Courses of Action with Respect to Indonesia”, dated July 12, 1954 transmitting a Progress Report dated July 12, 1954 by the Operations Coordinating Board on NSC 171/110
  • G. Progress Report dated July 16, 1954 by the Operations Coordinating Board on NSC 146/211
  • H. Memo for NSC from Acting Executive Secretary, subject, “United States Objectives and Courses of Action with Respect to Southeast Asia”, dated July 19, 195412
  • I. Memo for NSC from Executive Secretary, subject, “U.S. and Free World Controls over Transactions with Communist China”, dated March 3, 195413

The enclosed statement of policy on the subject prepared by the NSC Planning Board is transmitted herewith for consideration by the National Security Council at its meeting on August 12, 1954. Also enclosed for Council information as annexes are: (a) a chart showing proposed assistance for the Far East programmed for FY 1954–55 (b) a supplementary explanation by FOA of Section II of the statement of policy14 (c) a memorandum from the Legal Adviser, Department of State, to the Secretary of State on “Geneva Armistice Agreement Restrictions on Cambodia, Laos and Vietnam”.15

The Planning Board prepared the enclosed statement of policy in the light of the outcome of the Geneva Conference and on basis of a review of (1) the current policies with respect to Japan, Formosa, Communist China, Korea, Southeast Asia, the Philippines, South Asia and Hong Kong contained in references A–C and (2) the current NSC projects relating to the Far East listed above as references D–I.

Paragraph 10 of the enclosure is intended as a response to the recommendation of the Operations Coordinating Board with respect to Thailand contained in paragraph 8 of the memorandum from the Executive Officer, OCB, transmitted by reference H. Paragraph 11 of the enclosure proposes a revision of paragraphs 19 and 21 of NSC 171/1 in response to the recommendation of the OCB contained in the first paragraph on page 3 of the reference progress report (reference F).

It is recommended that, if the Council adopts the enclosed statement of policy after resolution of the divergent proposals contained therein, it be submitted to the President with the recommendation that he approve it, direct its use as a general guide in the implementation of policies toward the Far East by all appropriate executive departments and agencies of the U.S. Government, and designate the Operations Coordinating Board as the coordinating [Page 698] agency. Based upon Council action on the enclosure the Planning Board will review the current NSC policies for the Far East contained in references A–C and will recommend to the Council any necessary revisions therein.

James S. Lay, Jr.

[Here follows a table of contents.]

[Enclosure]

Draft

Statement of Policy Proposed by the National Security Council on Review of U.S. Policy in the Far East

preface

Consequences of the Geneva Conference

Communist successes in Indochina, culminating in the agreement reached at the Geneva Conference, have produced the following significant consequences which jeopardize the security interests of the U.S. in the Far East and increase Communist strength there:

a.
Regardless of the fate of South Vietnam, Laos and Cambodia, the Communists have secured possession of an advance salient in Vietnam from which military and non-military pressures can be mounted against adjacent and more remote non-Communist areas.
b.
The loss of prestige in Asia suffered by the U.S. as a backer of the French and the Bao Dai Government will raise further doubts in Asia concerning U.S. leadership and the ability of the U.S. to check the further expansion of Communism in Asia. Furthermore, U.S. prestige will inescapably be associated with subsequent developments in Southeast Asia.
c.
By adopting an appearance of moderation at Geneva and taking credit for the cessation of hostilities in Indochina, the Communists will be in a better position to exploit their political strategy of imputing to the United States motives of extremism, belligerency, and opposition to co-existence seeking thereby to alienate the U.S. from its allies. The Communists thus have a basis for sharply accentuating their “peace propaganda” and “peace program” in Asia in an attempt to allay fears of Communist expansionist policy and to establish closer relations with the nations of free Asia.
d.
The Communists have increased their military and political prestige in Asia and their capacity for expanding Communist influence by exploiting political and economic weakness and instability in the countries of free Asia without resort to armed attack.
e.
The loss of Southeast Asia would imperil retention of Japan as a key element in the off-shore island chain.

[Page 699]

courses of action

[I. Communist China]*

I. The Off-Shore Island Chain

1. The United States must maintain the security and increase the strength of the Pacific off-shore island chain (Japan, Ryukyus, Formosa, Philippines, Australia and New Zealand) as an element essential to U.S. security. To this end:

a.
Increase the military strength of Japan and the Philippines, improve the effectiveness of existing military strength of the Republic of Korea and of Formosa, and continue participation in ANZUS.
b.
Provide related economic assistance to the local governments in those cases where the agreed level of indigenous military strength is beyond the capacity of the local economy to support.
c.
Encourage [the conditions which will make possible]16 the formation of, and be prepared to participate in, a Western Pacific collective defense arrangement, including the Philippines, Japan, the Republic of China, and the Republic of Korea, eventually linked with the Southeast Asia security structure and ANZUS.
d.
Initiate and support appropriate measures which will contribute to strengthening the economy of Japan, its internal political stability and its ties with the free world.
e.
Intensify covert and psychological actions to strengthen the orientation of these countries toward the free world.

II. General Political and Economic Measures in the Far East

2. Encourage the prompt organization of an economic grouping by the maximum number of free Asian states, including Japan and as many of the Colombo Powers as possible, based on self-help and mutual aid, and the participation and support (including substantial financial assistance) of the U.S. and other appropriate Western countries through which, by united action, these free Asian states will be enabled more effectively to achieve the economic and social strength needed to maintain their independence.

3. Take all feasible measures to increase the opportunities of free Asian countries for trade with each other and with other free world countries.

[Page 700]

4. Provide technical assistance to help develop political stability and economic health.

5. [Increase and] strengthen “exchange of persons” programs with the countries concerned.

III. Southeast Asia

6. General The U.S. must protect its position and restore its prestige in the Far East by a new initiative in Southeast Asia, where the situation must be stabilized as soon as possible to prevent further losses to Communism through (1) creeping expansion and subversion, or (2) overt aggression.

7. Security Treaty. Negotiate a Southeast Asia security treaty with the UK, Australia, New Zealand, France, the Philippines, Thailand and, as appropriate, other free South and Southeast Asian countries willing to participate, which would:

Alternative A Alternative B
a. Involve the agreement of the participants that there should be immediate retaliation against Communist China if Communist China, directly or indirectly (such as through the Viet Minh) commits armed aggression against any free nation of Southeast Asia, including Laos, Cambodia and South Vietnam. a. Commit each member to treat an armed attack on the agreed area as dangerous to its own peace and safety and to act to meet the common danger in accordance with its own constitutional processes.
b.
Provide so far as possible a legal basis to the President, without need for further Congressional action, to attack Communist China in the event it commits such armed aggression.
c.
Ensure that, in such event, other nations would be obligated to support such U.S. action.
d.
Not limit U.S. freedom to use nuclear weapons, or involve a U.S. commitment for local defense or for stationing U.S. forces in Southeast Asia.

The U.S. would continue to provide limited military assistance and training missions, wherever possible, to the states of Southeast Asia in order to bolster their will to fight, to stabilize legal governments, and to assist them in controlling subversion.

8. Action in the Event of Local Subversion

[Page 701]
Alternative A Alternative B
Because of the strong possibility that the above-mentioned economic and military measures may not prove adequate to cope with the type of creeping expansion and subversion utilized by the Communists in Indochina, the U.S. should issue at the earliest practicable moment a declaration to the Chinese Communists that further Communist expansion on the mainland of Southeast Asia, determined by the U.S. to be directed and supported by the Government of Communist China, will not be tolerated and that its continuance would in all probability lead to the application of military power not necessarily restricted to conventional weapons against the source of the aggression (i.e., Communist China). Efforts should be made to expand the Security Treaty to include allied support for the above declaration. Failure to achieve full allied support should not, however, deter the U.S. from making such a declaration or taking action. In addition to its commitments under par. 7–a, the U.S. should be prepared, either unilaterally or under the terms of the South-east Asia Security Treaty, if requested by a legitimate local government, to assist it by military force, if necessary and feasible, to defeat local Communist subversion or rebellion which does not constitute external armed attack.

IV. Communist China

Alternative A

12. In order to foster free world unity and to remove concern that we will provoke a total war by accident or design, the U.S. should seek, as rapidly as feasible, to put its relations with Communist China on the same footing as those with the Soviet Union. To this end, the U.S. should: [Page 702]

a.
Make clear to Communist China our determination to attack Communist China only if it commits armed aggression.
b.
Increase efforts to develop the political, economic and military strength of non-Communist Asian countries.
c.
Cease to encourage or support Chinese Nationalist military action against Communist China while continuing to support the right of the Nationalists to retain Formosa.
d.
Acquiesce in the entry of Communist China into the U.N. if she adheres to U.N. principles and if Formosa also remains a member.
e.
Consider recognition of Communist China as the government of mainland China if she qualifies for entry into the U.N. under subparagraph d. above.
f.
Bring trade restrictions into conformity with those applying to the Soviet Union.
g.
Seek to impair Sino-Soviet relations by all feasible overt and covert means.

Alternative B

13. Seek to reduce, by means short of war, the relative power of Communist China in Asia:

a.

(1) Make clear to Communist China our determination to attack Communist China only if it commits armed aggression.§

(2) Retaliate promptly and appropriately for any Communist Chinese violation of accepted international behavior, other than armed aggression, directly affecting U.S. security interests.

b.
Increase efforts to develop the political, economic and military strength of non-Communist Asian countries.
c.
Maintain political and economic pressures against Communist China, including the existing embargo and support for Chinese Nationalist harassing actions.
d.
Support the Chinese National Government on Formosa as the Government of China and the representative of China in all UN agencies.
e.
Impair Sino-Soviet relations by all feasible overt and covert means.

Alternative C

14. Reduce the power of Communist China in Asia even at the risk of, but without deliberately provoking, war:

a.

(1) Prevent, by force if necessary, any further expansion of Communist control in Asia through creeping expansion and subversion or through armed aggression. Make clear to the Communists U.S. determination to take action directly against the source of any such expansion.

[Page 703]

(2) React with immediate positive, armed force against any belligerent Communist Chinese move.

b, c, d, e.
Same as 13–b, c, d, e.

Alternative D

15. Reverse the present trend toward greater Communist Chinese power in Asia by initiating an increasingly positive policy toward Communist China designed to confront the regime with a clear likelihood of U.S. military action against China proper unless Communist China takes public action to change its belligerent support of Communist expansion. To this end:

a.
Take such actions as to present Communist China with an obvious casus belli in the face of which the U.S., with such allied support as may exist, can by its preparatory acts and through direct secret warnings threaten military action against China and thus require China to test Soviet willingness to support China in the specific circumstances even though this involves general war.
b.
Be prepared and determined to carry out the threat of military action unless China backs down on the issue involved.
c.
Exploit by all means such a backing-down by Communist China to make it lose face in the Orient.
d.
Prevent, by force if necessary, any further expansion of Communist control in Asia through creeping expansion and subversion or through armed aggression. Make clear to the Communists U.S. determination to take action directly against the source of any such expansion.
e.
Maintain all practicable pressures on China, including covert actions, to create internal division in the regime and to intensify conflicts in Sino-Soviet relations.
f.
Maintain political and economic pressures against Communist China, including the existing embargo, covert actions and support for Chinese Nationalist harassing actions.
g.
Support the Chinese National Government on Formosa as the Government of China and the representative of China in all UN agencies.
h.
Increase efforts to develop the political, economic and military strength of non-Communist Asian countries, including development of Japan as a major power to counter-balance Communist China.

  1. NSC 125/2 and 125/6 are both entitled “U.S. Objectives and Courses of Action With Respect to Japan,” dated Aug. 7, 1952 and June 29, 1953, respectively.

    NSC 146/2, dated Nov. 6, 1953, is entitled “U.S. Objectives and Courses of Action With Respect to Formosa and the Chinese National Government.”

    NSC 166/1, dated Nov. 6, 1953, is entitled “U.S. Policy Toward Communist China.”

    All of these NSC papers are printed in volume xiv.

  2. NSC 170/1, dated Nov. 20, 1953, “U.S. Objectives and Courses of Action in Korea,” is printed in vol. xv, Part 2, p. 1620.
  3. NSC 5405, dated Jan. 16, p. 366.
  4. NSC 5409, dated Feb. 19, “U.S. Policy Toward South Asia,” is printed in vol. xi, Part 2, p. 1089.
  5. NSC 5413/1, dated Apr. 5, “U.S. Policy Toward the Philippines,” is not printed here. (S/PNSC files, lot 61 D 167, NSC 5413/1)
  6. Adopted at the 47th meeting of the National Security Council, Oct. 20, 1949, not printed. In Action No. 256, the NSC had in part recommended to the President that, in consonance with the views of the Joint Chiefs of Staff, the United States would not, under then present or then foreseeable circumstances, provide support to the United Kingdom for the defense of Hong Kong in the event of a Communist military attack on that colony. (S/SNSC (Miscellaneous) files, lot 66 D 95)
  7. For NSC Actions No. 1086–b and 1104–b, dated Apr. 6 and Apr. 29, respectively, included with the memoranda of NSC meetings held on those dates, see vol. xiii, Part 1, p. 1250, and Part 2, p. 1431.

    For NSC Action No. 1112, see footnote 2, p. 463.

  8. Dated Apr. 10, 1954, p. 411.
  9. For text, see vol. xi, Part 2, p. 1136.
  10. Neither printed here. (S/PNSC files, lot 62 D 1, NSC 171 Series).
  11. For text, see volume xiv.
  12. See footnote 1, p. 603.
  13. For text, see volume xiv.
  14. Both printed as annexes to NSC 5429/2, Aug. 20, pp. 774 and 775.
  15. For text, dated July 27, see vol. xvi, p. 1552.
  16. U.S. policy toward Communist China will soon determine the fate of Asia. Accordingly, unless the U.S. is prepared at this time fully to accept the challenge of countering Communist power and influence in Asia, which derives primarily from Communist China, there is the gravest probability that the area will fall under Communist domination. Accordingly, the Defense, JCS and ODM Members believe that U.S. policy with regard to China (Section IV. below) should be considered and determined first and that policy with regard to the peripheral areas should be established in light of this determination. [Footnote and brackets in the source text.]
  17. All brackets in the document are in the source text.
  18. See also Annex B. [Footnote in the source text]
  19. Because the Defense Member feels that this statement is inherently impossible of being made clear to Communist China, he would like to add the words “directly or indirectly” at the end of the statement. [Footnote in the source text.]
  20. Because the Defense Member feels that this statement is inherently impossible of being made clear to Communist China, he would like to add the words “directly or indirectly” at the end of the statement. [Footnote in the source text.]