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

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

Canberra, March 12, 1957—9 p.m.

Secto 10. March 12, afternoon session.

Delegates completed in morning session their speeches on situation in treaty area. Comments were asked for by chairman. Amjad Ali (Pakistan) drew attention of council to distinction between real neutrals and aggressive neutrals. Communist bloc objective is to keep first type uncommitted and economic aid offered for this purpose. Western powers do same hoping swing neutrals to free world side. Aggressive neutrals also get aid from both sides plus bonus from Communists as reward for propagating neutralism. Ali also warned that ChiCom influence in treaty area will grow with increased Chinese military and economic power. This applies particularly to overseas Chinese.

Lord Home (UK) pointed out dilemma of neutralist problem. If they are denied aid by west field will be monopolized by Communists with increased opportunities for subversion. Felt economic aid is potent weapon of free world which should be continued. Casey (Australia) summarized his government’s views as follows: Australia respects decision any country choose neutrality but genuine neutrality means no attacks on collective defense, no favoring of local Communists, no playing off one side against the other. Neutrals should not try to influence other countries against SEATO. There can be no neutralism re moral values. Real Communist attitude towards neutralizing of democratic countries to weaken free world. Problem of neutralism difficult one. Cannot be solved by denunciation of neutrals.

Garcia (Philippines) referred to British view that uncommitted countries can be influenced to join democratic bloc through economic aid and warned that this must not be done at expense of SEATO allies. There is already widespread sentiment that it pays more to be neutral.

Council then took up agenda item V—report of council representatives.² Lord Home accepted report and recommendations including budget arrangements³ but wished to speak later on proposal for secretary general.⁴ Emphasized importance counter-subversion activities and referred to training facilities in Singapore. Rak (Thai) praised report and accepted it as basis for next years activities. Accepted budget arrangements as compromise mentioning Thai preference for proportional budget-sharing. Accepted recommendations re secretary general emphasizing need to find right man for post.

Macdonald (New Zealand) referred to need for better coordination between civil and military branches, felt permanent working group spent too much time on housekeeping, criticized budget planning and suggested need for committee financial experts to help formulate budget. Praised program Public Relations Office and emphasized importance this field. De Felice (France) accepted the report and recommendations. Announced France was circulating draft resolution on economic and cultural activities.⁵

Casey approved report. Emphasized importance work CSE committee and need for action on their recommendations.⁶ Felt SEATO need not be too cautious in field of exposure Communist subversion and hoped some reports could be made public. Warned against over-classification of SEATO material. Australia strongly supports Bangkok terms of reference for economic committee limiting activities to problems arising out of treaty obligations. Referred to studies on maintenance and rebuild and skilled labor and said Australia would contribute to agreed projects. SEATO economic activities should be strengthened but did not favor permanent economic committee suggested by Pakistan. Accepted proposals for secretary general. Accepted budget recommendations but commented that Australia continues to believe in equal sharing of budget.

Dulles [spoke?] (see Secto 12⁷ for Secretary’s remarks). Secretary said he would comment later on secretary general.

Lord Home said he agreed with United States views on tasks Economic Committee. Britain prefers to use Colombo plan. Re secretary general, Britain had some reservations. What kind of man do we want for post? Perhaps preferable to choose man first. However British would go along with council representatives recommendations. Ali praised council representatives and unanimity of opinion and identity of interests shown there. Generally agreed with their recommendations with following comments: Communist subversion in East Pakistan particularly difficult problem because headquarters located over frontier in west Bengal. Felt proposed counter-subversion seminar would serve useful purpose. Approved proposed cultural program. Agreed in principle with increases in civil organization and establishment post secretary general but hoped there would not be increase in committee meetings. Felt expense of many delegates which Pakistan sent to Baghdad Pact and SEATO committees hardly justified by results. Expressed gratitude for economic assistance being received. Discussed problems created by Pakistan economic plan to increase standard of living 12 percent by 1960. Financial resources strained, inflation threatened. Agreed with United States and United Kingdom view that bilateral aid is best system. United States economic experts and Colombo plan officials now familiar with Pakistan economy and problems and he would not wish to change present system. However felt SEATO could be useful certain fields involving joint projects such as shipping, noted Secretary’s reference to possible use Asian development fund and recommended this be studied by SEATO Economic Committee.

Philippine delegate (Garcia) then endorsed report. After reiterating Philippine support for creation post secretary general, he welcomed acceptance by council representatives of Philippine proposal on budget-sharing. Garcia also emphasized that his government shared concern expressed by others concerning subversion and need combat it. Proposal for seminar at Baguio step this direction.

De Felice (France) after approving report, launched into dissertation on economic and cultural areas. Contrasting what he called Communist “unity” and western “disarray” in economic programs, he asked if it were not possible bring about greater “harmonization” economic activity. De Felice then drew council’s attention draft resolution presented by French delegate, designed develop education in SEATO countries.⁸ It proposed that “council invite their representatives to consider with help other competent bodies of SEATO problem educational assistance in treaty area and to recommend directly to governments any appropriate measures applicable within framework SEATO to be taken either by member nations on unilateral basis or by means bilateral agreements or multilateral programs”.

Home and Casey then both spoke briefly on subversion. Home offered make available British experience. Casey expressed willingness prepare, in cooperation security experts, article on techniques Communist subversion, to be published after clearance SEATO headquarters.

Council then considered specific resolutions.

(1) Budget. Council approved unanimously without discussion budget resolution,⁹ which took note of programs set forth by report and terms reference contained annex A.¹⁰ It approved staff proposed annex B and common budget set out annex C.¹¹ While agreeing continue equal shares for financial year 1957–1958, resolution stated in subsequent financial years budget will be shared on “different basis”. Council representatives instructed work out exact basis, on basis contributions of New Zealand, Pakistan, Philippines and Thailand will be equal and not together exceed one-third total budget.

(2) Secretary general. Council endorsed resolution establishing posts secretary general and deputy secretary general. Council representatives instructed work out administrative details including terms of reference. Member governments invited nominate candidates.

(3) Education. After brief discussion, council decided postpone until morning decision on French resolution.

After approval communiqué¹² council adjourned for day.

Dulles

1. Source: Department of State, Central Files, 396.1–CA/3–1257. Confidential; Priority. Pouched to London, Paris, Singapore, Karachi, Manila, Bangkok, Wellington, Djakarta, Saigon, Vientiane, Phnom Penh, Rangoon, Colombo, New Delhi, and Taipei at Canberra’s request.
2. “Report of the Council Representatives to the Council”, March 1957, SCR/57/REP–C, not printed. (Ibid., Conference Files: Lot 62 D 181, CF 839)
3. The recommendations referred to (all contained in the report cited in footnote 2 above) were for approval of the report itself, approval of terms of reference of various committees and other offshoots of SEATO, approval of funding for additional employees, and approval of a common budget for approximately $700,000.
4. The recommendation for a Secretary General was contained in a special report of the Council Representatives, which had been transmitted to the Department in telegram 2519 from Bangkok, February 27, not printed. (Department of State, Conference Files: Lot 62 D 181, CF 837) In a position paper dated March 2, Robert W. Zimmermann of the Bureau of Far Eastern Affairs stated that the United States was supporting the recommendation. “A review of the work of SEATO during the past year has shown the need for greater coordination and supervision of the activities of SEATO bodies under the direction of the Council Representatives. It-seems clear that this need will increase during the coming financial year because of increased activities and the enlarged staff envisaged for the organization.” (“Secretary General”, SAM D–5/5; ibid.)
5. SCM/57/D–6, dated March 12, not printed. (Ibid., CF 841) This draft resolution is summarized below.
6. According to the Verbatim Record of this session, Casey was at this point referring to recommendations by the Committee of Security Experts for the public exposure of Communist tactics. (SCM/57/VR–2, March 12; ibid., CF 840)
7. Infra.
8. For Council discussion of this resolution, see Document 146.
9. Annex I to a letter dated March 10 from Luang Bhadravadi, Chairman of the Council Representatives, to the Chairman of the Council, neither printed. (SCM/57/D–l; Department of State, Conference Files: Lot 62 D 181, CF 841)
10. To the report cited in footnote 2 above. Annex A is entitled “Terms of Reference of Council Representatives and of SEATO Bodies Under Their Jurisdiction”.
11. To the report cited in footnote 2 above. Annex C concerned the budget.
12. The communiqué for the March 12 session is not printed. (SCM/57/D–8, March 12; Department of State, Conference Files: Lot 62 D 181, CF 841)