Foreign Relations of the United States, 1955–1957, East Asian Security; Cambodia; Laos, Volume XXI

129. Background Paper Prepared by the Special Assistant for Asian Regional Programs, International Cooperation Administration (Chafkin)¹

SAM B–4/78

Washington, February 19, 1957.

ASIAN DEVELOPMENT FUND

Section 418 of the Mutual Security Act of 1954, as amended, which established the President’s Fund for Asian Economic Development was repealed by the Mutual Security Act of 1957.² The Act, however, provided that the $100 million appropriated in Fiscal Year 1956 for the Fund for three years would remain available for the original purposes in accordance with the provisions of law originally applicable. These provisions emphasized preference for projects of benefit to the Asian region as a whole or to a group or groups of countries within the region as a means of fostering regional cooperation in the economic growth of free Asia. Proposed projects under consideration or negotiation total about $100 million. As noted below, Pakistan, Thailand and the Philippines as well as Laos and Vietnam are involved in such projects.

Asian Nuclear Center

A report and recommendations prepared by the Brookhaven National Laboratory³ was completed and distributed by the United States to the 17 nations of the Colombo Plan Consultative Committee at the Wellington meeting in December 1956.⁴ At that time, the United States announced its willingness to contribute $20 million toward the capital and operating costs of the project subject to mutually satisfactory arrangements being worked out by the participating countries. The U.S. also suggested that a working group be established to develop the project. Preparations for discussions with the countries concerned in connection with such a working group meeting have been initiated. As visualized, the project, which would be located in the Philippines would be a major facility for research training and developing the practical application of atomic energy to the problems of the whole area of free Asia. It would also represent a significant effort to achieve closer cooperation of a large group of countries of diversified interests and culture.

Other Planned Projects

A program of $5 million was approved for the survey and construction of roads in Nepal to link up with roads and railroads in India to facilitate expanded trade and transport between the two countries. Negotiations are now under way on mutually satisfactory agreements governing the project. A contractor was selected and arrangements completed to permit a detailed engineering survey of a regional telecommunications system for Thailand, Laos and free Vietnam to link these countries with one another and possibly with others in Asia. Arrangements have been completed for a transportation survey of port, rail and road facilities affecting trade and transportation between Afghanistan and Pakistan. Projects are also being considered for certain projects in mineral development, port improvements, river basin development, and regional technical training and demonstration arrangements.

1. Source: Department of State, Conference Files: Lot 60 D 514, SEATO Conference Folder II. Official Use Only. Prepared as background for the U.S. Delegation to the SEATO Council Meeting at Canberra; attached to a note by R.L. Burns of the Reports and Operations Staff.
2. Section 418 was repealed in the Mutual Security Act of 1956, approved July 18, 1956. See 70 Stat. 559.
3. Not found in Department of State files.
4. The meeting was held December 4–8. Documentation concerning U.S. participation is in Department of State, Central File 890.00 for December 1956 and January 1957.