300. Memorandum From the Assistant Secretary of State for Far Eastern Affairs (Parsons) to the Secretary of State1
SUBJECT
- Vientiane’s 1500, November 30, Laos Aid Program2
Introduction
This message was intended by the Country Team as a preliminary reaction to the move now being made by the UN Secretary General and others to try to bring Laos under an effective UN umbrella in economic as well as in international political and/or military intervention fields.
Summary
The Country Team in Laos has concluded that it would be wise to promote the development of a new pattern of aid to Laos in which a UN organization through a truly neutral delegation would play the leading role as “coordinator” of existing aid programs and as “manager” of new ones and those transferred fully into UN hands.
Background
This conclusion is based on the belief that the aid programs as presently conceived, with the US providing the lion’s share and maintaining strict controls, have not been adequate to both counter Communist pressures and meet the needs of the Lao. Despite the progress which had been made, it became clear to the Country Team that after the events of July 17 the US programs and those of other friendly [Page 689] nations were going to have to be sharply stepped up in both time and magnitude if Laos were to be strengthened sufficiently to continue to retain its independence from Communist domination even with international moral support.
Preponderance of US Aid, Notably Military Aid
It also became apparent that the heavy preponderance of US aid, with the accent on military aid, had undesirable effects: it strengthened the Communist propaganda position, providing a pretext for intervention; it weakened the interest of other potential contributors to keeping Laos afloat; it leads Laos to believe we consider Laos of such strategic importance that they can safely make unlimited demands on US resources; and US controls inevitably build up serious resentment.
Advantages of UN Umbrella for Economic Aid
The Country Team sees the following advantages in putting economic aid under the UN umbrella:3 an active role of the UN in economic aid would supply an excellent basis for a UN political “presence” in Laos and reduce the long-range burden on the US; it would be proof of the peaceful objectives of the US in Laos; pacification resulting from UN Mission activities would reduce the size and role of the Army and more aid could be directed toward economic objectives; UN officials could work more effectively than US officials toward the improvement of the Lao administration.
Organizational Pattern of Aid
The Country Team sees as the major task that of developing a pattern that would satisfy the US Government that the objectives of its aid to Laos are being effectively attained by a UN organization. It proposes that in the beginning only certain segments of the aid program be transferred to the UN and others gradually transferred as the UN Mission becomes increasingly effective. The phasing of these transfers is discussed in some detail as to timing and results.
- Source: Department of State, SEA (Laos) Files: Lot 65 D 169, 300 General US Attitudes and Actions. Secret. Drafted by Erickson and concurred in by Anderson, Usher, and Chapman.↩
Telegram 1500 is included in the microfiche supplement. (Department of State, Central Files, 751J.5–MSP/11–3059) The telegram was discussed at the Secretary’s Staff Meeting on December 2:
“Mr. Parsons summarized a telegram from our Ambassador in Vientiane containing totally new views regarding a UN coordinated and administered aid program for Laos. He felt this would have serious implications for the entire area and would prejudice our obtaining appropriations for our programs. He thought our recent telegram to New York on this problem was the approach we should adhere to. The Secretary agreed generally but cautioned that we not be antagonistic to a UN presence. He added that it would be helpful if we could get UN endorsement for what we do there.” (ibid., Secretary’s Staff Meetings: Lot 63 D 75)
The telegram to New York is telegram 525 to USUN, sent to Vientiane as 1141, November 30, in which the Department of State provided a summary of its views on expansion of U.N. assistance to Laos. (ibid., Central Files, 751J.00/11–3059; included in the microfiche supplement)
↩- In circular telegram 797, December 4, sent to Vientiane for action and to 16 other posts for information, the Department of State responded that the United States should cooperate fully with the United Nations in the economic area, but did not believe it was desirable or feasible to turn over all U.S. economic aid programs in Laos to U.N. control. (Department of State, Central Files, 751J.5–MSP/12–459; included in the microfiche supplement)↩