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

55. Telegram From the Embassy in India to the Department of State¹

New Delhi, May 24, 1955—7 p.m.

1833. Evaluation of Simla Conference.² Embassy and TCM representatives have now been able interview Indian, Japanese, Indonesian, Philippine and Nepalese Delegates who attended Simla Conference.

A. Our joint conclusions are:

1. In view lack clear indication from United States side that President’s fund was intended preferentially for regional purposes, all delegations with sole exception of Japanese expressed desire give priority now in use foreign aid to national rather than regional development (i.e., existing pattern).

2. There was absolutely no opposition to regional projects as such, but some fear on part smaller nations that Japan and India might use regional approach build up their own prestige and economic position at expense smaller countries.

3. Similarly no delegation opposed in principle to small secretariat for CPCC, but delegations were not convinced that value of secretariat would justify cost. They also failed see need or value of central corps of technicians. All but Japan and India feared this as step toward dominance of region by Japan and India.

4. All delegations without exception felt conference was most useful as both instrument mutual self-education and in preparation for Singapore Conference,³ which will now have before it really basic problem of exploring relationships between regional and national development problems. We too agree conference of great value this regard.

5. Japan’s presence and outright advocacy of program to develop intra-regional trade and to emphasize multi-national projects such as regional training centers appears to have raised apprehension in certain quarters (Indonesia for instance) that Japan might be attempting reestablish its pre-war economic predominant position under a new guise.

B. On basis of above, Embassy and TCM recommend:

1. President’s fund be sympathetically considered by Congress. Assuming, and we think correctly, that the greater the feeling of interdependence among free Asian countries and the more they feel their security depends on their unity, the better they will [be] able withstand economic and political infiltration by international Communism. “[In] Unity there is strength” seems apply to free Asia as well as free Europe. If President’s fund finally approved in some form by Congress, it will stimulate gradual development of sound, regionally orientated programs, which may in turn help promote the unity we desire. Now that United States Government has initiated first serious consideration of regional, as distinct from purely national development, Asian countries would be discouraged and confused if we suddenly dropped idea. We stress again that Simla indicated no objection in principle to regional programs, but great need for time to educate and persuade. President’s fund should under this concept give preference to projects or programs having strong regional lines for first time, by pursuing subject in full committee at Singapore. This would appear require clarification United States Government’s own ideas on regional programs which could then be discussed by American missions concerned with governments sending representatives to Singapore.

3. [sic] When appropriate, use be made of fact all countries at Simla indicated vigorously preference for bi-lateral handling of foreign aid to any form of multi-lateral in mixture, in order refute hostile critics who attempt charge United States attaches political strings to its economic aid.

Both Embassy and TCM/I very appreciative courteous message from Stassen to Deshmukh contained Usfoto 1772.⁴

Cooper

1. Source: Department of State, Central Files, 890.00/5–2455. Official Use Only. Repeated to Tokyo, Manila, Saigon, Vientiane, Phnom Penh, Bangkok, Rangoon, Colombo, Djakarta, Singapore, Karachi, and Kuala Lumpur.
2. The conference was held May 9–19.
3. Representatives of the members of the Consultative Committee on Economic Development in South and Southeast Asia (the Colombo Plan) met in Singapore October 17–21, 1955. The communiqué of the meeting, dated October 21, is printed in Department of State Bulletin, December 12, 1955, p. 994. Documentation concerning the meeting at Singapore is in Department of State, Central File 890.00.
4. Not found in Department of State files.