143. Telegram From the Delegation at the SEATO Council Meeting to the Department of State1

Secto 9. SEATO. Morning session second day.

Continuation discussion agenda item four, exchange of views on matters affecting area.

Macdonald (New Zealand) first speaker:

Felt members should ponder Secretary Dulles statements 11th that (1) despotism only seem more solid and democracies seem less and (2) the more liberty people attain the more they desire. Thought Soviet system may carry seeds of own destruction. Pointed as example to expansion education in Soviet Union particularly in engineering and training of research scientists for which Soviet Union has great need. In such research it essential for liberty of thought which most difficult control or limit and still achieve progress. There are encouraging signs but optimism must not bring on complacency.

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Council Representatives report2 valuable document and sound summary recent developments. Such developments in Vietnam particularly pleasing; many at time Geneva agreements questioned viability of new government in south in face power, prestige, nationalist reputation of Viet Minh. Tremendous “economic political security” problems overcome by Diem government. Vietnam is “front line” of South East Asia against political and military pressure of Communist China. Events in North Vietnam must give Communists serious doubts about their ability win long-term contest with free government in south. Perhaps it not going too far to say Vietnam now seems be among areas where we can truthfully claim time is on our side and not on side of Communists.

Improvement in security situation Malaya, another cause for “considerable satisfaction”. Terrorists steadily dwindling in numbers and lying low in hopes putting pressure on Federation Government after independence or emerging into open political activity. Arrangements for transfer sovereignty proceeding smoothly and United Kingdom can be proud of effort. New Zealand Government prepared maintain its interest defense of Malaya and will continue to campaign against terrorists.

There are heartening signs in Singapore that local leaders conscious Communist threat and misuse by Communist elements of popular desire greater measure grounds of self-government. Good grounds for optimism on outcome present talks on status Singapore.

Report rightly emphasizes switch Communist tactics in treaty area. New policy could well switch again to use violent methods or some other tactical line. New policy however may be here to stay for some years and we must learn live with it and counter it. It necessary continue explain real nature Communist policy. Hungary carries valuable lesson for free world. Our defense effort must be sustained over prolonged period of tension. Recommended that both military planning and information program be pushed.

Felt greatly concerned over development Laos but thought we should not despair. New Zealand fears there may be tendency “wash our hands” of “rather awkward problem child who shows signs of falling into bad company”. Recommended we refrain from reaction of pique and annoyance and continue give assistance in order help Royal Government maintain present independence.

On Cambodia, said fraternization with Communists seems to have been carried to point real danger but recommended again attitude remain one genuine friendship and assistance.

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Noted with interest studies made within SEATO on position overseas Chinese and said it hopeful sign that policies Malaya government based on development of integrated interracial community.

De Felice (France):

Since Karachi SEATO meeting, South East Asia has ceased appear as area most directly affected by Communist expansion. Near East and Eastern Europe events have drawn attention peoples of world. While it out of place to comment on these events they had repercussions in treaty area. Efforts of Soviets designed to extend domination over Middle East and build pillar between free countries Europe and Asia. Eastern European events have served enlighten world opinion on values to be given Soviet diplomatic assertions especially principle non-interference. ChiCom cooperation in vindicating Soviet action Hungary should keep us on guard. Unfailing vigilance as necessary as ever.

Urged SEATO avoid action beyond limits strictly defensive objectives and which would appear as interfering with internal affairs of countries in area. We should use tact as main quality in struggle in gaining influence over minds of people in area.

In economic field we witnessing a race which must be won by free world. We must not minimize or underestimate dangers from new direction, i.e., economic and cultural blandishments of Communists. Political and psychological advantages of new policy are greater than mere quantitative increases in trade and we must draw lesson from such developments.

De Felice began detailed study developments in Indochina by saying France had regained esteem and friendship of Vietnamese people and that France intended play full part in South East Asia and therefore within SEATO. Considered that since Karachi meeting situation Vietnam had improved immeasurably, the most marked progress having been made in field of public order with the administrative and military organization of these3 destroyed during 1956 with their members scattered and their leaders seeking shelter either in flight or in allegiance to government. Danger however has not altogether been met. Subversive elements have now adopted new techniques of infiltration of lawful organizations. Particularly labor movements. It necessary establish sound and prosperous economy in order prevent Viet Minh exploiting social discontent. Vietnam Government now has time concentrate more on economic matters since political stability near attainment. When aim of greater economic stability [Page 316] achieved, some flexibility will have to be brought into present regime in order secure allegiance to Vietnam Government. Prosperity and freedom in South Vietnam will impress inhabitants in North.

Situation in other parts Indochina unfortunately not as bright. Fact that peoples socialist community in Cambodia obtained all seats in National Assembly did not result in greater political stability. Defeated leftists regrouping and will take advantage of new Soviet and ChiCom missions in Phnom Penh. Regretted Sihanouk deemed it necessary ask aid and friendship from Moscow and Peking despite his receiving United States and French assistance. France intended continue assistance efforts Cambodia which since 55 amounted to five billion francs. Called situation in Laos even more precarious. Outlined pending agreements between Pathet Lao and RLG.

In conclusion De Felice said we could however view scene with some optimism. He noted that threat of aggression and subversion has decreased and that SEATO by affirming collective will to resist has firmly contributed to this situation. Urged that military advisers continue excellent work and promised that France would continue its effort including development New Caledonia’s means and resources. Expressed hope that information services of SEATO would be associated in minds of people involved not only with defense but with the effort to fulfill economic needs of population.

Casey (Australia):

Said Australia member SEATO largely for geographic reasons. It closest non-Asian country to threatened area and its future bound up with South East Asia. Realized no one country in area strong enough resist or throw back threatened aggression and hence joined with strong friends. Other delegates, particularly France, had detailed developments in three Indochinese states and no need for him to elaborate.

Said we can all take satisfaction from fact that all three Asian SEATO members have made progress in last year. One would like to say this was due their membership in SEATO but it more realistic to say that same factors which lead them to join SEATO enabled them to make such progress.

Not all well however in SEATO area. There have been deplorable advances in neutralism which is an extremely difficult attitude of mind to counter. It is of course right of every sovereign country espouse policy neutralism and we in countering it should not merely denounce it. Felt that such neutralism should be genuine and not neutralism in favor of Communists. It disturbing to see tolerance in some countries of international Communism and denunciation collective security pacts. Instead of denunciation we should bring home to them that they should truly take middle path. Cited developments Cambodia and Burma and incipient neutralism Laos. Felt in Burma [Page 317] there was an increasing awareness of danger of succumbing to Communist blandishments.

Called South Vietnam most important of three free Indochinese states and said Diem government needs bolstering up.

Council Representatives might undertake study of possible actions to bolster Diem. Concerning possible SEATO membership, said disadvantages might outweigh advantages. Communists using Geneva agreement would be provided handle. Felt there were a number of other directions than SEATO membership. Suggested diplomatic recognition by all SEATO members and establishment diplomatic posts. Australia has such relations and was in fact giving economic aid also under Colombo Plan. Reiterated prestige Diem should be built up.

Re North, Casey felt that problems were building up for regime but that it would not be allowed to wither. Did not feel it would attack South Vietnam. Relative calm which exists between states is largely due presence SEATO as deterrent. Viet Minh knew attack would invoke action by SEATO.

Events in Cambodia one of unfortunate developments of ’56. Sihanouk dominating figure regardless of government position held. Cambodian Government has unfortunately not been known in past for wisdom of judgment. Members might consider inviting Sihanouk to visit truly democratic country. He receptive impressionable man who has visited number Communist countries. Australia unfortunately sees no sign disenchantment on part Sihanouk with Communist countries. Such disillusionment may come but Communist hooks may be in too deep to shake off.

On Laos, asked question what we could do. Expressed fear that cutting off aid, particularly United States, might give handle to Communists and precipitate communization.

Casey paid tribute to United Kingdom for efforts Malaya Singapore. Expressed hope that Asian SEATO members might help Malaya make up its mind join SEATO but urged this be done tactfully not pressing too hard but stressing advantages such membership.

In Burma 30 percent election vote went to Communist and pro-Communist elements but neutralism not as firmly enshrined now as two years ago. Australia expected Burmese develop away from Communism. Of all the neutralists Burmese seem to have fewer illusions.

Australia heartened by developments in Indonesia last few days. Prospects strong of coalition government soon excluding Communists. Sukarno attempt should serve as warning. Australian information is that Djakarta authority apparently confined Java and Indonesian Borneo.

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Information program should be expanded in order dispel any doubt including some in Australia as to present need for SEATO. Estimate should be made of ChiCom buildup and such analysis publicized to bring home true situation to average man. Also suggested on question subversion that definitions should be specific and should be translated into understandable terms and widely disseminated.

At end Casey remarks Secretary made policy statement Communist China (sent Secto 7 priority4).

Dulles
  1. Source: Department of State, Central Files, 396.1–CA/3–1257. Confidential; Priority. At Canberra’s request, pouched by the Department to London, Singapore, Karachi, Manila, Bangkok, Wellington, Djakarta, Saigon, Vientiane, Phnom Penh, Rangoon, Colombo, New Delhi, and Taipei.
  2. The Council Representatives report was discussed in the afternoon session of March 12; see Secto 10, infra.
  3. Apparent omission in the source text. According to the Verbatim Record of this session, De Felice, whose remarks in French appear in English translation, stated at this point that the administrative and military organizations of the sects, already shaken during 1955, were definitely destroyed during 1956. (SCM/57/VR–2, March 12; Department of State, Conference Files: Lot 62 D 181, CF 840)
  4. Dated March 12, not printed. (Ibid., Central Files, 396.1–CA/3–1257) See footnote 3, Document 141.