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United States Department of State / Foreign relations of the United States, 1951. Asia and the Pacific (in two parts)

East Asia and the Pacific: multilateral relations,   pp. 1-265 PDF (105.5 MB)

Page 2

cooperate with the Chinese and might not need to be invaded. Malaya is
likely to be invaded whenever the Chinese feel that they have digested
Indo-China and Thailand. If the British are able to hold Malaya,
Indonesia 7 probably also will remain outside the control of the Chi-
nese. If, however, Malaya falls, Indonesia probably will fall too, either
by invasion or through a decision that its future lies in cooperating
with -the Communists.
   When discussing the difficulty -of predicting the timing of events
Mr. Lacy pointed out that the present Indonesian government might
fall any day as a result of the breakdown of negotiations with the
Netherlands:concerning New Guinea and that the possibility always
exists that the Briggs Plan 8 will fail in Malaya. He hazarded the
guess that Malaya might hold.out from two to four months against a
full scale'invasion.
  Mr. Lacy concluded by remarking that the picture was gloomy but
gave no cause for hysteria. He did suggest, however, that it would be
wise for the United States not to dally in its procurement of strategic
materials from the area.
  17For documentation on U.S. relations with Indonesia, see pp. 583 iff.-
  8Reference is to British pacification operations in Malaya under the direction.
of"-Lt. Gen. 'Sir Harold Briggs.
SEAC Files'Lot 53D255 1
Report4Prepared by the Economic Cooperation Administration for
              the Southea8t A8ia Aid Po'icy   om
CONFIDENTIAL                    [WASHINGTON, January 10, 19510]
SEAC D-:39
           ST.]Vl STATUS REPORT AS OF JANUARY 8, 1951
  M1tr. rifin, Director of the Far East Program    Division, since his
return to Washington from     Southeast Asia,4 has been engaged in
CiFiles,of-the Southeast Asia Aid Policy Committee, 1950-1951.
  The Southeast Asia Aid Policy Committee, an interdepartmental:body estab-
lished in-1950,, was charged with responsibility for policy coordination
ing economic and military aid to Southeast Asia. Committee members were Dean
Rusk, 'Assistant:Secretary of State for Far Eastern Affairs (Deputy Assistant
SecretAryLivingston T. Merchant generally represented Rusk at SEAC meet-
ings; :Maj.Gen, Harry: J. Malony, Special Assistanit for Southeast Asian
lems,' Office of Ă½the Secretary of Defense; and R. Allen Griffin,
Director of 'the
Far East Program Division, Economic Cooperation Administration..-,
  'This pa.perkwas undated.;It was circulated as document SEAC D-39,
January 10.
  4Griffin headed a survey team which visited Southeast Asia in March and
April 1D50 to develop recommendations regarding initial economic and technical

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