[Enclosure]
Draft
Statement of Policy by the National
Security Council on Current U.S. Policy in the Far East
* Indicates paragraph of NSC 5429/3
revised by the Council, December 1, 1954 (NSC Action No. 1275).
** Indicates paragraph of NSC 5429/3
revision of which is recommended by the Planning Board.2
courses of action
5. In order to preserve the territorial and political integrity of the
area, the United States should:
**c. Ratify the Mutual Defense Treaty with the Republic of China
covering Formosa and the Pescadores, and jointly agree upon
safeguards against Chinese Nationalist offensive action. Pending
the ratification of such a Treaty, continue the existing
unilateral arrangement to defend Formosa and the Pescadores
(excluding the Nationalist-held off-shore islands). For the
present, seek to preserve, through United Nations action, the
status quo of the Nationalist-held
off-shore islands; and, without committing U.S. forces except as
militarily desirable in the event of Chinese Communist attack on
Formosa and the Pescadores, provide to the Chinese Nationalist
forces military equipment and training to assist them to defend
such off-shore islands, using Formosa as a base. However,
refrain from assisting or encouraging offensive actions against
Communist China or seaborne commerce with Communist China, and
restrain the Chinese Nationalists from such actions, except in
response to Chinese Communist provocation judged adequate in
each case by the President.
** e. Employ all feasible covert means, all feasible overt means
including, in accordance with constitutional processes, the use
of
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armed force if
necessary and appropriate, to prevent Indonesia or vital parts
thereof from falling under Communist control by overt armed
attack, subversion, economic domination, or other means.
** g. (1) Issue a directive to its armed forces that, in the
event of unprovoked Communist armed attack against U.S. military
or nonmilitary personnel, aircraft, or vessels outside Communist
territory, U.S. forces in the area will take against the
Communist attacking force immediate and aggressive protective
measures, including, if feasible and desirable, pursuit† of the Communist attacking force into hostile
airspace or waters.
(2) In addition to the action directed in (1) above, and as
specifically approved by the President, take such additional
retaliatory action as may be necessary and appropriate.
* 7. In order to weaken or retard the growth of the power and influence
of the Asian Communist regimes, especially Communist China, the United
States should:
Majority Proposal
** c. (1) For the immediate future and pending completion of and
U.S. action on the study referred to in (2) below, maintain the
current U.S. export, import and financial controls on trade with
Communist China, and strongly urge other free world countries to
maintain their current controls on trade with Communist China
and to refrain from such actions as sending trade missions to
Communist China.
(2) An appropriate agency or agencies should study on an urgent
basis, all aspects of U.S. economic defense policy applicable to
trade with the Communist bloc (including Communist China),
taking into account in such study, among other things, the
matters set forth in Annex B,3 and should
submit to the National Security Council at the earliest
practicable date comprehensive and detailed recommendations for
such revisions in such policy as may be required by national
security interests, both long and short range. [Any future
change in U.S. over-all economic defense policy should be
premised on the concept that it is part of an over-all
negotiating position which seeks to obtain an appropriate quid pro quo from any friendly, neutral,
or communist country profiting from any such change.]‡
(3) At a time determined by the Secretary of State, if feasible
after the study referred to in (2) above is completed, begin
consultations, particularly with the U.K. and France, looking toward agreement with the
other cooperating industrialized countries of the free world on
the extent, nature, and method of controls on trade with
Communist China.
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State Proposal
** c. (1) Maintain the current level of United States export,
import, and financial controls on trade with Communist China and
administer these controls in such manner as to minimize friction
with other Free World countries which might tend to lessen their
active cooperation in the multilateral control program.
(2) Urge other Free World countries to maintain the current level
of export controls on trade with Communist China. In aid of this
effort, the U.S. should be prepared to exercise a greater degree
of flexibility in handling problems of minor exceptions to the
multilateral embargo.
(3) Whenever it may be determined by the Secretary of State that
further effort to maintain the current multilaterally agreed
level of export controls would be seriously divisive among our
allies or lead nations needing trade with Communist China toward
an accommodation with the Soviet bloc, the Secretary should
report this determination to the Council together with his
recommendations, including guiding principles for any
negotiation relating to revision of the multilaterally agreed
controls.
*/** d. Utilize all feasible overt and covert means, consistent
with a policy of not being provocative of war, (*) to create
discontent and internal divisions within each of the
Communist-dominated areas of the Far East, and to impair their
relations with the Soviet Union and with each other,
particularly by stimulating Sino-Soviet estrangement, (*) but
refrain from assisting or encouraging offensive actions against
Communist China or seaborne commerce with Communist China, (**)
and restrain the Chinese Nationalists from such actions, except
in response to Chinese Communist provocation judged adequate in
each case by the President.
